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How High Will Interest Rates Go?

Many Happy Returns

CHAPTER

Why Central Banks Raise Interest Rates Incrementally

One of our listeners asks, why does central banks raise interest rates incrementally rather than in one big jump? Why are they done this? Slow hiking cycle when we could have just gone up to 4% interest rates a year ago. So there is a little bit of wait and see what happens. Although the Fed's been very aggressive with a 5 percentage point increase over the course of just over a year.

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