Monetary Policy with Low Real Interest Rate: Implications and Prospects

While central banks around the world have been increasing their policy rates, we still live in an environment of historically very low real interest rates. This generates challenges, which are added to those of the current context of higher inflation and higher government debt, countries' unequal recovery from COVID, and war in Europe. There is significant uncertainty regarding the economic outlook, in particular concerning future growth, future inflation, and future interest rates. This is challenging for central banks and governments, but also for the financial sector.

The Class will start with a review of the recent evolution of various types of interest rates and the debate around the causes of that evolution. We will discuss the recent strategies of the main central banks, from very loose monetary policy to the current phase of tightening. Special attention will be given to the evolution of yield curves and bank rates in this context. Participants will have the opportunity to exchange on how this affects their daily business and how they cope best.
 
Regarding future prospects, the Master Class will explore the various forces at play, and review the options available to central banks and the interaction between monetary and fiscal policies.

Co-Leaders :

• Prof. Philippe Bacchetta, SFI Senior Chair, University of Lausanne
• Dr. Barbara Rudolf, Monetary Policy Analysis, Economic Advisor, Swiss National Bank

The Master Class is aimed at professionals in the financial industry who are interested in central bank actions, in global economic questions, and/or are focusing on fixed income investments.

This Master Class is an acknowledged SAQ recertification measure for the CWMA, CCoB, Affluent-, SME-, and Individual Client Advisor profile and comprises four learning hours.

Limited number of participants. Registration required (subject to approval).

Swiss Finance Institute

Fondation Genève Place Financière