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Large Debt Burdens Stoke World Bank Concern Over Higher-for-Longer Rates
The prospect that high interest rates will keep constricting the global economy is worrying World Bank officials as they look to the impact on nations nursing large debts. Both Ajay Banga, the institution’s president, and Chief Economist Indermit Gill warned that the fallout from the sudden shift to an era of elevated borrowing costs may be tough. “I do think that interest rates will stay higher for longer,” the World Bank chief told reporters in the Moroccan city of Marrakech on Wednesday. “That can be a complicated event in many ways, both for investments as well as for people who over the years got used to ... (full story)