Breaking down interest rate movements That wraps up my discussion of yesterday’s decision, which was very much a look at what we are considering in the near term. Now let’s consider the forces influencing interest rates in the long term.
In late 2019, a decade after the Global Financial Crisis, no one could foresee what was coming. The scenario for an acute global economic disruption due to a pandemic was nothing more than a rare tail event. Unfortunately, this scenario materialized and had a tremendous impact on the social and economic activity worldwide.