Don’t expect higher interest for years, says German finance minister

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Don’t expect higher interest for years, says German finance minister

In the wake of a basket of policy easing measures alongside interest rate-cut among most of the G7 and G20 nations to weather a withering impact of a sluggish global economy, which had been just an inch shy of a mass-scale recession, Finance Minister of Germany, the world’s fifth-largest economy by purchasing power parity (PPP) and the fourth-largest by nominal GDP, said on Saturday (August 17th) that the interest rates of a stack of Central Banks across the globe would likely to remain “very low” over the “next few years,” adding that corporate investors should grab the opportunity of a borrowing cost anchoring around at an almost zero-figure to step up investments in the private sectors.

In point of fact, latest comment of Germany’s finance minister, Olaf Scholz, came forth after a few days the European Central Bank (ECB) had hinted possibilities of strong monetary stimulus including probability of a potential rate-cut in order to prevent a downturn spiral in euro zone’s economy, which had every potentiality to lead the bloc’s economy to a mass-scale recession.

Further into the bid, adding that the global Central Banks had been in the pursuit of a loose monetary policy including ECB to weather challenges of a havoc-scale slowdown, Scholz said on Saturday (August 17th), “I also believe that the time of higher interest rates can come up every now and then, but that will not happen in the next few years because of central bank policies.

What I would wish for is more investments by the private sector. My wish is that we also achieve such a cultural change here. ”