Central Banks Sending Worrisome Signals About the Economy
The Breakdown
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What Is Yield Curve Control?
The Reserve Bank of australia has raised interest rates for the first time in almost a year. The central bank is using yield curve control to push up bond prices and lower longer-term rates. This could lead to an increase in housing prices, which will force more people into refinancing their mortgages at sub prime rates. It's not clear how long this policy will last but it may have serious implications for human beings around the world who are trying to make ends meet.
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