World faces period of elevated key interest rates amid aftermath of Iran war — Bloomberg

NEW YORK, July 6. /TASS/. The global economy will face a period of elevated key interest rates due to the economic consequences of the US and Israeli war against Iran, Bloomberg reported.

Analysts at Bloomberg Economics have released their July forecast for key interest rates. According to the forecast, the average key interest rate of central banks in the world’s leading economies will remain at an elevated level until at least 2028.

By the end of 2026, it will stand at 5.1%, up from 4.41% forecast in January, that is prior to the start of the war in Iran. By the end of 2027, it will drop to 4.5%, with a 0.75 percentage point gap relative to the January forecast. In 2028, the difference between the forecasts will remain at around 0.5 percentage points.

The Bloomberg Economics report highlights inflation risks stemming from the aftermath of an energy crisis triggered by a halt in shipping through the Strait of Hormuz during a war involving Iran, as well as from the rapid adoption of artificial intelligence technology, the agency wrote. The Bloomberg Economics forecast covers 23 countries that account for 90% of global GDP.