A high real cost of borrowing is not that frightening , if we consider that:
a) high real interest rates stem from fears of debt repudiation and that such fears may prove self-fulfilling;
b)market trades lower inflation in the short run for higher inflation in the long run;
c) contrary to Walras’ law, which states that the bond market always clears, that is not obviously happening at present;
d) it means less investment projects are financially viable;
e) it reveals the Keynesian collapse of the marginal efficiency of capital and the rise of liquidity preference that is only cash and not highly illiquid financial assets of some corporates...
On this subject read also here