© Reuters. FILE PHOTO: The World Financial institution emblem is seen on the 2023 Spring Conferences of the World Financial institution Group and the Worldwide Financial Fund in Washington, U.S., April 13, 2023. REUTERS/Elizabeth Frantz/File Picture
WASHINGTON (Reuters) – World Financial institution chief economist Indermit Gill on Wednesday mentioned previous expertise confirmed that rates of interest could cease going up, however they’re unlikely to come back down “anytime soon,” which may have extreme unfavorable penalties for creating international locations.
Gill mentioned steep debt servicing prices, excessive debt burdens and slowing development in lots of international locations raised issues a couple of new debt disaster and the chance of contagion when international locations default, however mentioned he doesn’t view the chance as “imminent.”
He advised reporters that inflation developments regarded promising in superior economies, however provide shocks – particularly in commodities markets – may increase inflation once more shortly, which might put strain on central banks to maintain charges excessive.
