In an interview with Bloomberg TV from Washington, Banco Santander SA Executive Chairman Ana Botin expressed her optimism about the current state of the global economy. Despite geopolitical risks, Botin stated that higher interest rates, strong employment, and overall growth are benefiting lenders like her bank. The International Monetary Fund has slightly raised its expectations for global economic growth this year, citing the strength in the US and some emerging markets. However, the IMF also cautioned that persistent inflation and geopolitical risks could impact the economic outlook.
In light of this positive outlook, Botin anticipates terminal interest rates to be around 3% in Europe and 4% in the US. She noted that these rates are favorable for commercial banks like Banco Santander SA. Botin also mentioned that negative interest rates were unsustainable and posed risks to the financial system.
Overall, Botin’s outlook remains positive, highlighting the current strength of the global economy and the benefits it brings to lenders like Banco Santander SA.