Central Banks
World’s Higher-for-Longer Rate Era Stokes Worry
- A lot ‘could go wrong,’ Gopinath tells IMF gathering
- Officials eye risks of tighter lending on banks, real estate
Gita Gopinath, Christine Lagarde, and Ngozi Okonjo-Iweala during a panel session at the International Monetary Fund and World Bank in Marrakesh, Morocco.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Now that the higher-for-longer interest-rate era has arrived, global finance officials are getting worried about the consequences.
Rising long-term bond yields signal investors increasingly believe cheap borrowing is over. Multiple attendees at the International Monetary Fund’s meetings this week cautioned that the wholesale tightening now risks inflicting a shock to a world economy already on edge as war rages in the Middle East.