Surely Real Rates are the issue? Ie now when inflation is 7%+ and rates are 4%, rates are effectively lower than when inflation is 2% and rates are 1%. I'm not buying lots of these analyses.
For what it's worth, since people make borrowing and lending decisions taking into account what they think inflation will be over the course of the loan, usually inflation predictions over the next however-many years are used to compute the effective real rate of interest, not the current rate of inflation.
