Question

What are the current trends of inflation and the real interest rates on the market today?

Answer 1

There are very low inflation in the the overall global economy, as there is a lack of demand to shrinkage in global growth rate because of coronavirus. The shrinkage in global growth rate can also be attributed to lack of consumer disposable income due to high level of unemployment across the globe.

There are almost no scenarios of inflation and interest rate has also been reduced to almost zero by the Federal Reserve in a countermeasure to face the recessionary like situation so there is almost negligible probability for a recession and real market rate and nominal market rate of interest are almost similar because there is no inflation in world.