BOE’s Vlieghe: Interest rates may stay at historically low levels for decades

Dhwani Mehta FXStreet

Interest rates may stay at historically low levels for decades, the Bank of England (BOE) policymaker Gertjan Vlieghe said in a webinar on Monday, adding that he doesn’t see higher rates returning in his lifetime.

Key quotes

“We’re going through one of these very long-term, low-interest rates periods again.”

“It’s going to be with us for another decade, maybe another two. It doesn’t mean interest rates don’t go up from current levels. It just means that when they go up, they don’t go back to 4% or 5%.”

“Rates during the 1970s and 1980s were unusually high, so lower levels would better represent the average.”

“People living longer and building up savings as being one of the reasons for the shift.”

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Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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