World Bank Deputy Chief Economist Ayhan Kose says, “We are expecting interest rates, especially, real interest rates to be elevated for the foreseeable future.”
This is because global inflation will be around 3% – still too high for many central banks. Dr. Kose also expects more countries in “frontier markets” to default on their debt, as global growth from 2020-2024 is expected to be approximately 2% which is the lowest clip since 1990-94.