Are low interest rates here to stay? After analyzing 800 years of real interest rates, a working paper from the Bank of England seems to say so.
Long-term rate trendlines all suggest that currently “depressed” real rates are fully “at historical trend”.
Real rates could swing anywhere in the short-term, so regardless of the accuracy of this prediction we focused instead on the collection of real interest rates since the 14 century. These data present an interesting view of rates charged to sovereign states and famous families including the English Crown, Habsburg princes, Papal States, the King of Denmark, and the United States.