Pick any article talking about the European Central Bank (ECB) or the Federal Reserve (FED) raising interest rates to curb inflation. Some talking points:
- When central banks raise interest rates, it means that they are charging higher interest rates to lend money to commercial banks which in turn charge higher interest rates when lending to consumers. This can affect the economy in several ways. Firstly, it makes borrowing more expensive for businesses and individuals, which can slow down economic growth. It can also make savings accounts more attractive, which can encourage people to save more money instead of spending it.
