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Monday, 26 September 2022

Central banks, including the Federal Reserve and Bank Indonesia, raised their interest rates. What is the consequence?

Ilustration Imam Yunnianto. tempo : 167562076348

AS predicted, central banks around the world, from the Federal Reserve to Bank Indonesia, raised their interest rates. Now, all stakeholders must carefully recalculate how this drastic monetary policy pivot will affect businesses, the macro economy, and the market.

High-interest rate regime nowadays actually is the only logical consequence of expansive monetary policy during the pandemic. Two years ago, for the sake of rescuing the economy, or m

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