Interest rates are likely to stay low over the next two years  The economic shock from COVID-19, however, will probably take longer to subside than its financial counterpart, despite the combination of fiscal and monetary support provided.
Global activity has rebounded from the lows of April (when most of the world faced a strict lockdown), as restrictions on economic activity and people’s mobility have been lifted. But activity indicators are still significantly below pre-crisis levels, and as activity gradually converges towards ‘normal’ levels, the pace of convergence slows. Some commentators argue that the harder part of the economic normalisation begins now.