The ECB Podcast Summer School #2: the nuts and bolts of interest rates
The ECB Podcast
The Effects of Rate Hikes on the Economy
We're about a year into this hiking cycle, depending on how you define it. Some people in the initial phase might be insulated because they've got a fixed rate mortgage. But with high interest rates, it's expensive to wait five or ten years for future profits. And we are seeing some degree of shake out in the tech sector. So that's another way interest rates work. We do not promise that inflation drops very quickly. It helps explain why we have a medium-term focus.
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