The weaker-than-expected developments in the global economy in the meantime were, as shown in a deterioration in business sentiment indicators, beyond many people’s expectations, including us.
3 Monetary policy new normal Subdued inflation and low interest rates characterised the macroeconomic environment in recent years. In the US, interest rates stayed at around the zero lower bound for seven years. Currently, the federal funds rate is bound to a target range of 1.75% to 2%.