Turkey's central bank hikes interest rate by 500 basis points to 40%, well above expectations
Tyfud @ Tyfud @lemmy.one Posts 2Comments 142Joined 2 yr. ago
Tyfud @ Tyfud @lemmy.one
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It reduces spending, because saving is now exceedingly optimal.
Less spending means inflation generally comes down because companies lower prices to meet the lack of demand.
But yes, too high and it can cause even worse inflation, assuming an even capital distribution among the people.