If the world wants to promote better capital allocation alongside the removal of zombie companies, then interest rates need to increase. Investors shouldn't need to be pushed into thinking that funding your government comes with a lower ROI than funding a zombie business that will probably never see a profit in the future. With the limited amount of land, labor, and money out there, money should be allocated towards things that are productive and sustainable, not things that are not productive and not sustainable (ahem, zombie companies).

Based on the macroeconomic data, the economy continues to do well. Signs of inflation rebounding are there and by cutting rates, the central bankers will let inflation soar once again. The Red Sea Crisis and higher oil prices will all push inflation higher. Banks may be struggling but they shouldn't have to rely on the fair value of the loans on their balance sheet to justify their health. As long as people make payments on their loans and social media influencers stop promoting bank runs, the banking system will remain functional.

Let's hope that interest rates remain the same or go higher so that we can create a foundation where the businesses of the future can operate well on their own and not have to rely on artificially low interest rates to keep themselves alive.