What is going to happen with interest rates?
August 9, 2017 9:20 am
Akhil Patel: Who knows? But I would say we have probably seen the low in short-term interest rates, with most economies emerging from the debt problems of the last cycle. Governments can look to “normalise” monetary policy be bringing interest rates off their record lows. But I don’t expect to see high interest rates now. Inflation is historically very low. Central bankers can “afford” to keep interest rates lower than average. You typically see interest rates rising into the mid-cycle slowdown (forecast for the end of the decade) and into the cycle peak (around 2026).