John Bostjancic on Interest Rates, Inflation, and Capital Allocation in 2025
2025 hasn’t made capital decisions any easier. Markets are unpredictable, interest rates are still uncertain, and inflation is stubborn. For CFOs, this isn’t just a financial puzzle—it’s a real-world balancing act that impacts every part of the business. John Bostjancic, with years of financial leadership behind him, knows exactly how to navigate this terrain without losing sight of long-term strategy.
In John Bostjancic's view, today's fiscal environment isn't to be shunned—but attention, discipline, and a good head are essential. What his experience has instructed him is that in times like these, it's the fundamentals that count above all else: cash flow, debt structure, and ROI.
The Impact of Interest Rates
Interest rates in 2025 are not what they used to be. After a few years of hikes, the pace has slowed, but unpredictability remains. For companies making borrowing decisions, that means you have to run tighter models, double-check assumptions, and stay flexible.
According to John Bostjancic, interest rates have become a primary factor in capital allocation discussions. Every financing decision now involves a sharper look at the cost of capital. Whether it’s refinancing debt, funding new projects, or evaluating acquisitions, nothing gets a green light without measuring the interest impact first.
"You can’t just take low rates for granted anymore," John Bostjancic explains. "You have to look at fixed vs. variable, timing, and what assumptions you’re building into your models."
Inflation’s Lingering Effects
Inflation isn’t as aggressive as it was a year or two ago, but its shadow still lingers. Prices haven’t dropped; they’ve just stopped climbing so fast. For financial leaders like John Bostjancic, this means staying alert.
He closely monitors input costs, supplier contracts, and wage trends. This attention to detail allows his team to forecast more accurately and make adjustments before small issues grow into major cost overruns.
"Inflation isn’t just about what you pay for materials," says John Bostjancic. "It’s about understanding your entire cost structure and knowing where pressure is building."
Even in pricing strategies, he encourages caution. Businesses have to recover rising costs without driving away customers, a balance that requires sharp financial insight and close coordination with commercial teams.
Strategic Capital Allocation in a Shifting Economy
With both interest rates and inflation presenting headwinds, capital allocation in 2025 has become more strategic than ever. John Bostjancic believes that companies must shift away from blanket spending and move toward focused, high-return investments.
"You can’t afford to spread your capital thin," he says. "Every dollar has to work hard."
He focuses on initiatives that demonstrate quantifiable, discernible results. Whether operational optimization, digital enablement, or product development, the business justification has to be bulletproof. John Bostjancic insists on analytical rigor and forthright discussions on payback period and ROI.
This cautious but confident approach allows businesses to continue growing, even in uncertain environments. Instead of freezing investments, his strategy is to invest smarter—in areas that deliver value fast and strengthen long-term positioning.
Liquidity and Risk Management
Another area John Bostjancic focuses on is liquidity. With market conditions still uncertain, having access to cash isn’t just smart, it’s necessary. He ensures his companies maintain strong cash reserves, diverse financing options, and contingency plans.
"You want to be in a position where you can act fast, not scramble," John Bostjancic explains. "Liquidity gives you flexibility."
He also leads regular scenario planning exercises. These sessions prepare the organization for different outcomes, rate hikes, cost surges, market shifts—so that there’s always a plan in place.
Staying Close to the Fundamentals
While headlines tend to be concerned with the broad-brush economic trends, John Bostjancic is convinced that day-to-day execution still matters most. Effective forecasting, tight cost control, and open communication across functions all lead to improved decision-making.
He collaborates closely with operations, sales, and product teams to ensure finance is serving the bigger mission, not merely coping with spreadsheets. This cross-functional collaboration ensures that capital allocation choices are aligned with company objectives and rooted in reality.
Final Thoughts
2025 may not offer perfect clarity, but for seasoned CFOs like John Bostjancic, it presents an opportunity to get back to financial fundamentals. By focusing on smart capital allocation, understanding the true cost of money, and staying alert to inflation pressures, companies can remain resilient.
John Bostjancic has always believed that financial leadership is about more than reacting to numbers. It’s about making choices that create long-term value, even when the path isn’t obvious. And in this year’s complex financial environment, that kind of leadership matters more than ever.
