Global growth is likely to accelerate a bit during the coming two years while inflation and interest rates should generally remain very low. The US and UK are set for a period of fairly rapid growth. However, the recoveries in most euro-zone countries appear too weak for them to make much progress in reducing their debt burdens and high unemployment rates. Growth in the major emerging economies is also likely to remain relatively subdued. Against this backdrop, inflationary pressures should remain low, although in the US core inflation and interest rates are likely to rise gradually.
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