Low interest rates encourage governments to deficit spend. But when interest rates reach a paltry 4% most countries will be spending their entire income to meet interest payments. This is insane. Governments will collapse or simply print money as in the Weimar Republic.
Interest rates need to be gradually raised to the point where retirees can live off the interest of their savings like they used to be able to. I’ve read that the short-term rate should be allowed to float like the long-term rates rather than being arbitrarily decided by an unelected cabal of ten people.