How raising interest rates reduces inflation

In the stygian depths of the financial abyss, the rite of raising interest rates doth cast its eldritch spell upon the frothing maelstrom of inflation. The arcane practice, steeped in the mystery of the central bank’s will, doth render borrowing a most fearsome prospect, slowing the relentless march of economic growth and sapping the very lifeblood from the demand for goods and services. Thus, in the face of this profane ritual, prices do crumble and inflation is brought to heel, like a many-tentacled beast from the depths of time, chained by the sheer force of the central bank’s arcane power.

The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.


At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.

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