Ultra-low interest rates are set to return with inflation due to tumble in the near future, according to the International Monetary Fund .
This will be welcome news to homeowners, many of whom have recently been hit with a steep rise in mortgage costs. The United Nations financial agency says that the combination of an ageing population and low productivity is set to rein in inflation and take interest rates back to pre-Skyrocketing inflation, currently at a four-decade high in Britain, is only a hiccup in the overall trend for low interest rates, rather than a permanent change to the global financial landscape, the IMF said.
"Recent increases in real interest rates are likely to be temporary. When inflation is brought back under control, advanced economies' central banks are likely to ease monetary policy and bring real interest rates back towards pre-pandemic levels," a report by IMF economists concluded.
If the government recovered all that money they gave to their mates during the pandemic that would help out alot
Yes but the prices ushered in by that “blip” will remain won’t they? Inflation is just the rate of rise. It won’t cause a reduction in food prices.
July 2021, inflation is just a blip.
Even if, in the future, price rises are not as steep as now, the higher prices we have to pay now will be a permanent thing
But what will the remoaners say 🤷🏻♂️
Or in the U.K.’s case, the hike in inflation caused by government incompetence
Sparked by Covid money laundering is more like it.
What we need is for the USD to crash through the floor and to shift back to a gold standard.
If world growth forecast is poor, then interest rates will have to fall to pre-pandemic levels. LAW OF SUPPLY AND DEMAND!
No one believes a fkn word.
You mean sparked by Lockdown ?
'Ultra-low' is headline grabbing and their reasoning misses the point ( leading hedge fund analysts such as Luke Gromen on Twitter explain why) but the direction of travel is correct imo and macro funds are positioned for this. Negative real rates are good for physical assets
Even if they do, IMF is quite often wrong. I don't see retailers bringing their prices back down to pre-covid levels..
Looks like interest rates are going higher then.
Yeah yeah yeah......
When policy makers have spent 25 years piling their money into property rather than savings, their policies are bound to support high prices in the housing market.
Along with hyperinflation if so.
The economy can't function without cheap money. Innovation is a thing of the past, as the rich hoard not invest!
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Source: i newspaper - 🏆 8. / 89 Read more »