In a recent interview with Bloomberg TV from Washington, Banco Santander SA Executive Chairman Ana Botin expressed optimism about the current state of the global economy. Despite geopolitical risks, Botin stated that the global economy is in good shape, with higher interest rates, strong employment, and overall growth benefiting lenders like her bank.
According to Botin, the International Monetary Fund has slightly raised its expectations for global economic growth this year due to the strength in the US and some emerging markets. However, she also cautioned that persistent inflation and geopolitical risks could impact the economic outlook.
In terms of interest rates, Botin anticipates terminal 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. Moreover, she mentioned that negative interest rates were unsustainable and posed risks to the financial system.
Overall, Botin’s outlook remains positive as she highlights the current strength of the global economy and its benefits to lenders like Banco Santander SA.