The outlook for global economic growth remains subdued. A number of risks could weaken growth further, including persistent inflation, higher interest rates, and increased geopolitical tensions. Currently, financial markets are not expecting further increases in Bank Rate; although interest rates will likely need to stay high for some time to make sure inflation continues to fall. Interest rates on longer-term government bonds are back to where they were before the global financial crisis. These interest rates act as a benchmark for other types of borrowing. So, when rates on government bonds are higher, it often ... (full story)