So much of the global economic outlook depends on the success of the fight against the novel coronavirus pandemic and one thing that is almost certain is that current ultra-low interest rates will likely continue for quite some time.

Each time the news features progress on a vaccine, the US stock market jumps as investors get excited about possibly getting the pandemic under control.

However, as the US and other countries struggle to contain the virus, the effect of COVID-19 on the global economy is expected to be deflationary in major developed markets and is likely to keep inflation below targeted levels.

In the United States, for instance, the expectation of prolonged low inflation has seen the US Central Bank pledging to keep short-term interest rates near zero through 2022 in order to soften the blow to the economy caused by the novel coronavirus pandemic as well as to stimulate economic activity.

http://www.jamaicaobserver.com/sunday-finance/bonds-the-way-to-go_199304