New Delhi, Sept. 6 -- For almost two decades, governments, businesses and households the world over benefitted from low borrowing costs. If words and actions of many central banks are anything to go by, that could well be coming to an end. Mint explains why the era of cheap money is ending.

The period of low, or even ultra-low, interest rates began after the 2008 financial crisis. Most developed nations cut interest rates sharply to revive the economy and ensured massive liquidity through quantitative easing. Interest rates in the US remained near zero for seven years after the financial crisis till 2015, and again for two years post the pandemic. In the euro zone, borrowings costs were below 1% since 2009 and fell below 0% in 2015 befor...