Will Interest Rates Stay Stuck in Negative Territory for Ten Years?

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Back Will Interest Rates Stay Stuck in Negative Territory for Ten Years?

Aitor Merino

Modified 1 Year ago.

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Will Interest Rates Stay Stuck in Negative Territory for Ten Years?

15 mins.

26 OCTOBER, 2020

ANALYSTS:

Leopoldo Torralba null

Ignacio de la Torre null

The impacts of the unprecedented crisis under way are countless, and the future scenarios discounted by many, never explored before. Today, in a four-paged note, we analyse the phenomenon of the market discounting negative interest rates for the next ten years in Europe. This variable has a direct impact on companies, investors, individuals and governments.

Does the scenario discounted by the markets for the current decade make sense according to the expected economic fundamentals?

What do we believe is the more likely evolution of long term interest rates?

What are the greatest risks to our central scenario?