Eric LeCompte is quoted in Bloomberg on the negative impact that the policy of raising interest rates has on the developing country debt crisis. Read an excerpt below and click here for the full story.
World’s Higher-for-Longer Rate Era Stokes Worry
By Craig Stirling and Eric Martin
In a statement released on Saturday, Jubilee USA Network, a Washington-based non-profit group advocating financial relief for poor nations, criticized the sustained push to hike borrowing costs at a time when the IMF is forecasting weak growth, and inflation is easing.
“The flawed policy of raising interest rates means that more developing countries face debt crisis,” said Executive Director Eric LeCompte. “More than half of all countries are having trouble paying their debts and meeting the basic needs of their people.”
Regarding the overall outlook, there were still words of comfort on offer in Marrakech, notably from Gopinath, who observed that “the core” of the financial system has held together, even if many wouldn’t have predicted that with the extent to which rates have risen.
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