this post was submitted on 11 Jul 2023
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Economics

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[–] bernieecclestoned 1 points 1 year ago* (last edited 1 year ago)

It will kill inflation, reducing the amount of borrowing by raising the cost will reduce business investment

Central banks want to see more unemployment and reduced spending by consumers with disinflation as a result

UK and US both have elections next year, so they'll want to be able to drop rates fast and juice the economy in time