‘Unnatural’ real interest rates demand Fed tightening: Fitch

SINGAPORE (April 19): Borrowers should brace themselves for a significant shift in the global interest rate environment in the next few years.

The Fed Funds rate is likely to normalise at 3.5% by 2020, far higher than current market expectations. US 10-year bond yields will rise to over 4%.

That’s according to Fitch Ratings in its “Unnatural Real Interest Rates” research report which was published today.

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