Easy money era ending, rates to stay high: French economist

French economist Jean-Pierre Landau has cautioned that the era of easy money is drawing to a close, with real interest rates likely to remain structurally high going forward.

Landau attributes this shift to three key factors: declining savings, mounting investment requirements, and elevated public debt levels across economies. These structural headwinds are expected to sustain higher real interest rates in the medium to long term.

The warning underscores growing concerns among global economists about persistent inflation and tighter monetary conditions ahead, signaling a departure from the low-rate environment that characterised the post-2008 period.