Is the world ageing out of interest rates?
you are currently viewing::Is the world ageing out of interest rates?December 3, 2025-Interest rates are a key monetary policy tool used by central banks around the world to encourage changes in economic activity.
From global rate hikes to political pressures, central banks can't stay out of the news these days. But these headlines overlook a growing challenge for central banks: With the share of the population aged 65 or over set to nearly double by 2054, their policy tools may become less effective. Interest rates have long been a key instrument of monetary policy, used much like car pedals, with cuts made to accelerate economic activity and hikes to slow it down. Historically, interest rate changes have been effective in helping central banks deliver on their mandates-to preserve price and, more often than not, financial stability. This is typically because monetary policy tools operate by encouraging or discouraging spending, saving and investing habits. Source: WEF (World Economic Forum) |
April 14, 2026-The global economy faces renewed tests as the war in the Middle East threatens to disrupt growth and disinflation.
After withstanding higher trade barriers and elevated uncertainty last year, global activity now faces a major test from the outbreak of war in the Middle East. Assuming that the conflict remains limited in duration and scope, global growth is projected to slow to 3.1 percent in 2026 and 3.2 percent in 2027.