Interest rates are just getting back to normal
House prices will fall in real terms, helping younger people on to the property ladder. Savers will be able to make a return, and while there are some zombie companies out there the corporate sector as a whole has hundreds of billions of cash that can earn interest again.
Add it all up, and there are far more winners than losers. In reality, 5-6pc interest rates are completely healthy. There may be a few bumps along the way, but we should stop catastrophising and celebrate their return.
In reality, interest rates are just getting back to a perfectly normal range of between 4pc and 6pc. They have been at those levels for most of the last 300 years. Indeed, they have often been a lot higher, and when we measure them in real terms, after allowing for inflation, they are still very low.
Telegraph 17 October 2022
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