Easy money era is ending, interest rates to stay high: French economist Landau
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Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓French economist Landau said the era of low interest rates is ending as global conditions shift.
- ✓He noted, “Markets are going to be more selective than before.” Rising investment needs and aging populations will keep rates high.
- ✓Investors now face more risks, pushing government bond yields up across the world.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Livemint
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
“We had almost three decades of very low interest rates. Long-term real rates were not a monetary factor, they were a real factor. We are coming now, maybe, to a period where this very favourable situation is coming to an end,” Landau said.
In September, the US Federal Reserve raised its benchmark interest rate by 25 basis points (bps), the first hike in three years. The European Central Bank has raised the key rates twice in 2026—in June and September, each time by 25 bps.
Landau flagged three drivers of the latest change. First, global savings will likely decline, especially in emerging economies, including China, where young populations that once had high savings and are now ageing.
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