“More on interest rates and inflation”, Vasyl Yurchyshyn (Rauzumkov Centre, Ukraine)

Recently, we addressed the issue of inflation at the global and national level, as well as the role of central bank rates in countering inflation. High inflation in the leading developed economies, including the USA and the EU, in the summer of 2022 forced the central banks to abandon the policy of low (zero) interest rates, which was practiced during the coronavirus period, and to introduce strict monetary measures.

One of the most efficient anti-inflationary tools is presented by high base rates set by central banks. At the same time, the central banks of big economies are guided by the policy of the US Federal Reserve (FED), which largely determines the trends in the global financial system. The current FED measures against global inflationary shocks are expectedly triggering changes in the policies of central banks of other countries.

Read more here.