In what Ways does Increasing Interest Rates Control Inflation

Описание: It makes headlines when central banks increase interest rates. The bank has determined that continuing to raise interest rates is the only way they can try to reduce inflation. Rates will rise in the future. Increasing interest rates will raise borrowing costs. It may have an impact on the entire economy. It can erode consumer confidence, lead to a loss of jobs and reduced salaries, and bring down stock prices. Going too far too quickly can cause economies to enter a recession. What drives central banks to boost interest rates then?