Opinion

Why low interest rates aren’t coming back

Cheap money isn’t coming back. Bigger deficits, the energy transition and investment in AI mean the cost of borrowing will be higher in the years ahead.

Michael ReadEconomics correspondent

Jun 2, 2025 – 11.17am

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Rate cuts might be coming, but that doesn’t mean we’re heading back to the era of cheap money.

Central banks including the Reserve Bank of Australia are rethinking where interest rates should land once the dust settles, and the answer is higher than they used to be.

Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS.