As a result, asset prices including stock prices will increase and bonds will be sold and interest rates will rise. BIS central bankers’ speeches  7  Consequently, at the transmission channel in which monetary policy effects surface gradually and the economy grows steadily, it is natural that longer-term interest rates initially will fall and then rise in due course.
On the contrary, if longer-term interest rates remain low, this would imply prolonged low growth, given that inflation expectations are unchanged. As a footnote, let me point out that one needs to be careful in discussing the effects on an economy of a case in which interest rates are increasing in a desirable way.