Interest Rates Up, Way Up

Story filed by W Tippin

The central bank, in a completely unsurprising decision, has announced a 3 point bump in interest rates in a powerful attempt to cool Will World’s overheating economy.

The latest statistics put the inflation rate at 4.1%, far about the target rate of 1 to 3%.  The central bank hopes the higher rates will drive down consumer spending and keep Willians from borrowing any more money.  As debt levels increase, economists worry that the citizens are over-extending themselves and borrowing more than is in their best interests.

The higher central bank rate will increase the rate for loans and investments.   Whether the dramatic increase is enough to decrease spending will not be known until next cycle’s sales and inflation data are released.

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