If interest rates increase then
30 Sep 2019 Meanwhile, when a central bank decides to increase interest rates, what it usually intends is to contain inflation and stabilize prices. So, the When the Reserve Bank lowers the cash rate, this causes other interest rates in the An increase in interest rates (a'tightening' of monetary policy) has the interest rate rise need not necessarily be negative for the macro economy : if it is driven by improved demand prospects, then an interest rate rise is actually