UK to see return of ultra-low interest rates, IMF says
Ultra-low interest rates are set to return with inflation due to tumble in the near future, according to the International Monetary Fund (IMF).
This will be welcome news to homeowners, many of whom have recently been hit with a steep rise in mortgage costs.
The United Nations financial agency says that the combination of an ageing population and low productivity is set to rein in inflation and take interest rates back to pre-COVID levels.
Skyrocketing inflation, currently at a four-decade high in Britain, is only a hiccup in the overall trend for low interest rates, rather than a permanent change to the global financial landscape, the IMF said.
“Recent increases in real interest rates are likely to be temporary. When inflation is brought back under control, advanced economies’ central banks are likely to ease monetary policy and bring real interest rates back towards pre-pandemic levels,” a report by IMF economists concluded.
The IMF analysis found that the “natural” rate of interest had not been changed by the pandemic.
The so-called “natural” rates of interest, an anchor for monetary policy that neither stimulates nor discourages economic activity, “will remain low in advanced economies or decline further in emerging markets,” the report concluded.
If accurate, that means less fiscal pressure as governments will be able to borrow more cheaply.
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But it would mean central banks, particularly in developed countries, may again have to rely on bond buying and other strategies to cut policy interest rates.
Some economists have argued the pandemic shifted the natural rate of interest higher, reversing forces like globalisation that helped keep borrowing costs low and also driving up government debts to historic levels.
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The Bank of England has released documents revealing a slight increase in UK’s GDP in Q2 of 2023, contrary to its earlier predictions of a technical recession.
The IMF said it is possible things have changed, and noted that the impact of developments like the transition to a less carbon-intensive economy remain to be seen.
However, the fund said its analysis suggests that the current high rates “are likely to be temporary”.
Once rates normalise to prior low levels, a deep enough recession may force central banks “to resort to the same strategies they employed in the decade before the pandemic, such as balance sheet policy and forward guidance”.
Former British heavyweight world champion Anthony Joshua delivered a dose of reality to YouTuber-turned-boxer Jake Paul as he won their much-anticipated showdown.
Joshua scored three knockdowns before landing a huge right hit on Paul halfway through the sixth round.
The British fighter lifted Paul’s hand in a show of respect after the fight broadcast on the streaming platform Netflix.
Joshua landing the right hit that knocked out Paul. Pic: AP
“Jake Paul has done really well tonight. I want to give him his props, he got up, time and time again,” he said about his opponent.
Joshua said it “wasn’t the best performance”, adding: “It took a bit longer than expected. But the right hand finally found the destination.”
Joshua celebrating his win after the fight. Pic: Reuters
Meanwhile, Paul said: “I’m feeling good, that was fun. I love this sport. I gave it my all, It’s f****** crazy. I had a blast.
“I got my ass beat, but that’s what this sport is about. I’mma (going to) come back and keep on winning.”
He added: “I just got tired to be honest. He did amazing and hits really hard.”
Jake Paul was knocked down three times before the final knockout in the sixth round. Pic: Reuters
The fight marked the end of a 14-month hiatus for Joshua, 36, while for 28-year-old Paul it was the biggest fight since his boxing career began in 2020.
At the weigh-in on Friday, Joshua boasted an almost two-stone advantage over Paul, who has regularly fought at cruiserweight since he entered the world of boxing.
Britain’s two-time world heavyweight champion tipped the scales at 243.4lbs (17st 5lbs) for his fight against Paul in Miami, while Paul weighed in at 216lbs (15st 6lbs) – a hefty 1.9st difference.
Joshua, who could not weigh more than 245lbs, is the lightest he has been since his first fight against Oleksandr Usyk in September 2021 when he was 240lbs. For his last fight against Daniel Dubois he weighed 252.5Ibs.
Jake Paul and Anthony Joshua at the weigh-in. Pic: Reuters
It is also only the second time that Paul weighed in over cruiserweight limit – the other time was when he fought 58-year-old Mike Tyson. Paul defeated Tyson by unanimous decision with 80-72, 79-73, and 79-73.
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Family of nine-year-old Aria Thorpe pay tribute to ‘beautiful soul’ as teen appears in court charged with murder
The family of a nine-year-old girl stabbed to death have said she was a “beautiful soul” who was brave, kind-hearted and “always put a smile on people’s faces”.
Police were called to Lime Close in Weston-super-Mare, Somerset, just before 6.10pm on Monday, where Aria Thorpe had suffered a single stab wound.
The child was pronounced dead at the scene.
In a tribute released by Avon and Somerset Police on Friday, the girl’s family on her mother’s side said: “For those who didn’t have the privilege of knowing Aria, she was the most beautiful little soul – happy-go-lucky, full of light, and joy.
“She loved to sing and dance, and she took such pride in dressing up, always wanting to look just like her mummy.”
Tom Thorpe, the girl’s father, said: “It’s hard to put into words how devastating it is, our little Aria, that you’re up there with the angels looking over us.”
It comes as a 15-year-old boy charged with Aria’s murder appeared in court.
Pic: Avon and Somerset Police
Aria was a ‘precious girl’
In their statement, Aria’s family on her mother’s side said her death “has devastated us beyond words”.
“Our hearts are broken in a way we never imagined possible,” they added.
“As a family, we are holding one another close and doing everything we can to support each other through this unimaginable time.”
They said they were “truly touched by the lovely messages we have received”, before asking “that our privacy is respected, as we try to come to terms with the terrible loss of our precious girl”.
Flowers laid in memory of the young girl
‘Wacky ways and outright madness’
Mr Thorpe said: “How sad it’s going to be not hearing ‘Dad, how long left?’ on our long journeys back and forth at weekends.
He then said that Aria was “such a brave, kind-hearted and a beautiful innocent soul”, and “always put a smile on people’s faces with your wacky ways and just outright madness”.
Mr Thorpe added: “Your other little family down here in Portsmouth will forever miss you.
“We’ll miss you begging to go outside, even in the pouring rain just to have as much fun as possible in the little time we had at weekends.
“You will be greatly missed, you special little angel. A life gone far too early but I hope a life lived well. We all love you dearly. Goodnight darling.”
Teenager in court
Meanwhile, a 15-year-old boy charged with Aria’s murder appeared at Bristol Crown Court on Friday, where he was remanded.
The teenager, who cannot be named because of his age, was arrested in the Somerset village of Worle at 6.19pm on Monday.
He is next due in court on 16 March 2026. Appearing via video link from youth detention accommodation, he spoke only to confirm his name.
Judge Peter Blair KC set a provisional trial date for 15 June during the hearing.
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