Era of cheap borrowing may be over as world enters 'a new macro regime': Moody's

Why This Matters

Key context: The era of ultra-low interest rates is ending, ushering in higher borrowing costs. Investors anticipate sustained investment in artificial intelligence and infrastructure projects. Geopolitical risks are also expected to remain elevated in the coming years. Bond markets reflect expectations of structurally higher interest rates for an extended period. Capital will likely flow towards AI, defense, and critical minerals sectors. This development from timesofindia.indiatimes.com highlights ongoing changes in the sector.