Interest rates eventually should fall back to levels seen before the outbreak of COVID-19, with advanced economies again within sight of the 'zero lower bound' and developing countries seeing rates in steady decline, the International Monetary Fund said in a new analysis of whether the 'natural' rate of interest was changed by the pandemic.
A man walks past the International Monetary Fund logo at its headquarters in Washington, U.S., May 10, 2018. REUTERS/Yuri Gripas
Though rates are high now as major central banks battle inflation, "when inflation is brought back under control, advanced economies’ central banks are likely to ease monetary policy and bring real interest rates back toward pre-pandemic levels," IMF analysts said in research released as part of the latest World Economic Outlook.
If accurate, that means less fiscal pressure as government will be able to borrow more cheaply. But is also means central banks, particularly in developed countries, may again have to rely on bond buying and other strategies once some future downturn prompts them to cut policy interest rates to zero.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
IMF’s Georgieva: India, China to account for 50% of global economic growth in 2023International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva said that “the global economy is estimated to grow less than 3 percent in 2
Read more »
MAP: DC Street Closures for the World Bank Group and IMF Spring Meeting - Washingtonian⚠️ STREET CLOSURES ⚠️ You'll want to avoid these downtown streets.
Read more »
Expect These Road Closures For The IMF/World Bank Spring MeetingsThis week is the IMF/World Bank Spring Meetings --- which means D.C. residents can expect road closures and parking restrictions in Foggy Bottom through Sunday. Here's what you need to know:
Read more »
Day traders are buying stocks in 2023, but meme interest fading: RobinhoodRobinhood's head of investment strategy says retail traders are continuing to pile into stocks - and now favor long-term strategies over the rush of meme plays
Read more »
Police seek husband as 'person of interest' in Palm Desert homicideThe husband of a woman who was found dead this week at her Palm Desert home is missing and is considered a person of interest in her death, officials said.
Read more »
Arizona Cardinals host football day camp as interest increases for girlsYoung girls had some fun in the sun with current and former Arizona Cardinals players, learning the basics of football through a day camp Saturday. MORE ⬇️
Read more »