Global Economy Faces Higher Capital Costs, McKinsey Study Says
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The global economy faces an imminent end to three decades of low interest rates as emerging markets embark upon a building boom and aging populations drain savings, according to McKinsey & Co.
A shift toward investment and away from savings is set to drive up the cost of capital with long-term interest rates possibly starting to rise within the next five years, the research division of McKinsey, the international consulting firm, said in a study released today.