Citigroup: Lack of growth to keep interest rates low

THE world’s major central banks are unlikely to raise interest rates until 2013 as sluggish global growth keeps a lid on inflation, Citigroup has said.

“Global economic prospects continue to worsen markedly, especially for many advanced economies,” Citigroup economists wrote in a note to investors.

“At this stage our base case is for a long period of low policy rates and we do not expect” the US Federal Reserve, the European Central Bank or Bank of England “to hike rates before 2013,” the economists wrote. The Bank of Japan may not raise rates until 2014, they said.