Banco Santander SA Executive Chairman Ana Botin has stated that despite geopolitical risks, the global economy is in good shape. She expressed optimism about the current state of the economy, calling it a “super-soft landing” so far. In an interview with Bloomberg TV from Washington, Botin talked about the positive outlook for the global economy.
The International Monetary Fund (IMF) has slightly raised its expectations for global economic growth this year, pointing to the strength in the US and some emerging markets. However, the IMF also cautioned that there are persistent inflation and geopolitical risks that could impact the economic outlook. Central banks are preparing to lower interest rates, and Banco Santander SA anticipates terminal rates to be around 3% in Europe and 4% in the US. These rates are favorable for commercial banks like Banco Santander SA.
In her interview with Bloomberg TV, Botin highlighted that negative interest rates were unsustainable and posed risks to the financial system. She also mentioned that higher interest rates, strong employment, and overall growth are benefiting lenders like Banco Santander SA. Despite these risks, Botin remains positive about the current state of the global economy and its benefits to lenders like her bank.