And so central banks in many countries will have to remove some of the stimulus, and interest rates around the world will have to return to more normal levels. This process has already started, with market rates adjusting in anticipation of future increases in policy interest rates.
There is no doubt that over the next year, we will see upward adjustments in policy interest rates around the world. The timing and the magnitude of these adjustments will vary from country to country, according to each one’s economic circumstances.