But investors are simply petrified that any recovery in economic growth and profits won't keep up with the rise of interest rates from rock bottom levels.
That's one of the traps of ultra-low rates — a small percentage point increase is a massive percentage rise in interest costs.But, while central banks may move to keep a lid on rising rates in the short term to buy markets a bit more time, it's unlikely they can keep doing that indefinitely. "Decades of inequality-driving neoliberalism followed by unlimited free money only for the people who drove that same policy to prevent a Minsky moment [financial crash] comes at a political price."Shane Oliver is less dramatic in his forecast, but still sees a return to the gravity of higher interest rates as inevitable.
"Central banks are now throwing the kitchen sink at beating deflation and disinflation just as they threw it at high inflation in the 1980s and early 1990s.
our economy is going downhill no way the government will increase the interest rate
Great reporting.
Rise my precious, rise!!!!!!
interestrates are rising? Where? They can hardly go lower! Higher interest rates are good news for some. Not everyone has a home or a mortgage ABCNews
How remarkable. People who like money more than sex trick people into the 'long term low interest rates cycle' story, only to change the market forces with their clout and claim a profit at your expense. Who'd of thought?