Post #4012801

Apparently it’s “incorrect” to believe that higher interest rates could increase inflation, the RBA says. Funny, an IMF study found actually that hiking rates *did* worsen the 2022-2025 inflation episode, with countries that did it ending up with higher peak inflation and it taking longer before inflation started to drop (after the external drivers actually causing it eased). https://www.imf.org/en/publications/wp/issues/2025/10/24/navigating-the-2022-inflation-surge-571068 #inflation #interestrates