CARGA_INICIAL20200528
Monetary policy and business lending: Impact on pricing
The recent reversal of the ECB´s unconventional monetary policy is already driving interest rates higher, raising the risk of triggering an increase in corporate bankruptcies, which would increase the private sector´s marginal cost of borrowing even further. As interest rate hikes have started around the world, global central banks will have to determine whether or not they chose to live with inflation, or risk adverse consequences for the economy.