Cross Talk

Cross Talk


Interest rates - do they really control inflation?

November 04, 2016

Reserve banks spend a lot of time discussing the interplaybetween inflation and interest rates. In this third episode of the DebunkingEconomics podcast we look at how the two are inter-related and whether the bondis as tight as Central Banks seem to believe. How does it relate to theinterest rate your own bank charges for a mortgage? And why, when interestrates are so low, are we not seeing the expected level of inflation growth?