Borrowers Brace for Prolonged Period of Higher Interest Rates Unlike Post-Crisis Era

• Markets see interest rates staying elevated for years unlike post-financial crisis era • Borrowers face more pain from higher rates after locking in past lower rates • Traders bet on steep rate cuts in 2023-24, boosted bonds and stocks • But rates expected to only fall to around 3% by end of 2024, not to near-zero • Higher neutral interest rate amid inflation risks means no return to easy money era