dailypro2020

The 40-Year Low Rate Era Is Dead: Bloomberg Economists Map a 2.8% Future 2026-06-06 | By DailyPro2025 Analysis Team Table of Contents Eight Structural Drivers of a Higher-Rate World Korea's Rate Path: Two More Hikes This Year Stablecoins: From Crypto Shelter to Global Payment Backbone Machine-to-Machine Payments: Stablecoins as the AI Economy's Settlement Layer Korea's Think Tank Crisis: Zero S-Grades in National Research Evaluation Strategic Implications: Investing in a Higher-Rate World My Take Bloomberg Economics has declared it officially: the 40-year era of low interest rates is over. In their new book "Money Shock," the Bloomberg team presents a detailed scenario where the US 10-year natural real interest rate — the so-called R* or neutral rate that balances saving and investment — bottomed at 1.7% in the mid-2010s, rose to 2.3% by 2022, and will peak at 2.8% by the 2030s. That would be the highest neutral rate since before the 2008 Global F...

Bank of Korea Governor Shin Hyun-song sent a clear signal on June 1 that interest rates are heading higher. Speaking at the BOK International Conference in Seoul, Shin said there are "few obstacles to monetary policy adjustment" — a notably strong statement from a central bank chief. This came just four days after the May 28 Monetary Policy Board meeting where the board held the base rate at 2.50%. The timing matters: the economy grew 3.6% year-on-year in Q1 2026, while Gross Domestic Income surged 12.3%. I think the market is still underpricing how quickly the BOK will move, and the 12bp gap between OIS pricing and the dot-plot median tells me bond yields have further to rise. The Governor's Three-Part Message: What Was Actually Said Shin Hyun-song's remarks at the BOK International Conference on June 1 broke down into three clear and distinct themes, each carrying specific policy implications that the market is still digesting. The first and most important w...