Leading economists and central bankers agree that interest rates will remain high for a long time. TV channel reports this CNBC.
Croatian National Bank governor Boris Vujicic said leading economists and central bankers agreed that interest rates would remain high for a long time.
According to him, Europe will face shocks due to geopolitical tensions and high inflation. Central banks around the world have been aggressively raising interest rates over the last year and a half to control inflation. But this has brought only limited success so far.
Vujicic emphasized that rates will remain high until inflation approaches the central banks’ target level. He said financial markets have been slow to adjust to prolonged periods of high interest rates.
This position is shared by European Central Bank President Christine Lagarde, World Bank President Ajay Banga, as well as the presidents of the central banks of Austria, Latvia and South Africa. They agree that despite the economic slowdown, high rates will continue for a long time for inflation to return to target levels.
According to Robert Holzmann, president of the Austrian Central Bank, the risk of increasing inflation due to possible geopolitical turmoil continues. This may require additional interest rate increases.
Last week, European Central Bank President Christine Lagarde promise To combat high inflation in the Eurozone.
Previously expert saidHow could the crisis in Europe affect the Russian economy?