Interest rates in major economies are likely to fall to pre-pandemic levels, according to the International Monetary Fund (IMF).

The IMF's latest world economic outlook suggests that recent interest rate rises will fall once inflation is under control. However, the report did not predict how soon this would happen.

The Bank of England has increased interest rates 11 consecutive times since December 2021, taking them from 0.1% to 4.25% in an effort to curb soaring inflation.

While the Office for Budget Responsibility says inflation peaked at 11.1% in October, it remained high at 10.4% in February - over five times more than the Government's 2% target.

The IMF also predicted that the UK will be one of the worst-performing major economies in the world in 2023. According to the report, the UK economy will shrink by 0.3% this year and grow by 1% in 2024.

In an article, the IMF said:

"When inflation is brought back under control, advanced economies' central banks are likely to ease monetary policy and bring real interest rates back toward pre-pandemic levels."

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