FD And Loan Interest Rates To Remain Low In 2021

Analysts expect central banks across the globe to maintain their highly accommodative monetary policies in 2021, even as the global economy is expected to accelerate economic growth away from last year's coronavirus-induced slowdown.

In Bloomberg's quarterly review of monetary policy that covers 90% of the world economy, no major western central bank is expected to hike interest rates this year.

In fact, China, India, Russia and Mexico are among those predicted to cut their benchmarks even further.

The assumption is that central bankers will want to guarantee that recovery is safe before they even start to consider tightening policy as continued uncertainty over COVID-19, elevated unemployment and weak inflation remain major concerns. Even if inflation makes a comeback this year, central banks will likely try to look through it, says a Bloomberg report.

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