Banco Santander SA Executive Chairman Ana Botin expressed optimism about the current state of the global economy, despite geopolitical risks. She stated that higher interest rates, strong employment, and overall growth are benefiting lenders. In an interview with Bloomberg TV from Washington, Botin talked about the positive outlook for the global economy. The International Monetary Fund 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.
As central banks prepare to lower interest rates, Banco Santander SA anticipates terminal rates to be around 3% in Europe and 4% in the US. Botin noted that these rates are favorable for commercial banks. She 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.