When inflation in advanced economies is tamed, real interest rates are likely to drop to pre-pandemic levels, the latest International Monetary Fund (IMF) blog post has said. According to the authors of the blog post, the transition to a “cleaner economy in a budget-neutral way” could result in lower rates in the medium term. Recent Interest Rate Hikes Temporary Interest rates in advanced economies are likely to fall to pre-pandemic levels when authorities succeed in bringing inflation back under control, the latest International Monetary Fund (IMF) blog post has suggested. The blog post added that the “recent increases in real interest rates are likely to be temporary.” The return of real interest rates to levels seen before the spread of Covid-19 will also coincide with the easing of the respective countries’ monetary policy regimes. As has been reported by Bitcoin.com News, central banks from advanced economies have raised benchmark rates as they seek to tame inflation. The risi
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