In real terms, using the inflation-linked swap (ILS) as a deflator, they currently stand at about 0.7 and 0.5 per cent respectively, from around -4 and -2 per cent at the end of 2021 (fig. 8). The fact that long-term interest rates started increasing well before our first key rate hike should not come as a surprise.
But the freer flows around the globe have probably also contributed to the size and persistence of global imbalances - the current account deficit of the United States and the surplus of the rest of the world.