Home / Opinion / Columns / Let's get real about rates

Let's get real about rates

Given myriad cross currents across inflation, growth and financial stability, monetary policy in 2024 will have to cross the river by feeling the stones

Premium

11 min read Last Updated : Mar 15 2024 | 12:47 AM IST

As the United States Federal Reserve (Fed) and European Central Bank (ECB) get closer to start cutting rates, pressure will rise on the central banks in emerging markets to follow suit. This is not because growth is stalling. Au contraire, growth has consistently surprised to the upside across much of the global economy last year. Encouragingly, this growth resilience has carried over into 2024, with global growth tracking close to trend this quarter.

Instead, the reason commonly proffered for monetary easing is that real rates are prohibitively high. This may apply to some advanced economies that undertook the most aggressive

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

Topics : India inflation monetary policy Financial Stability Report US Federal Reserve BS Opinion European Central Bank

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in