Rates Rising

Countries are starting to increase their interest rates. Here's why.


Why the hurry to raise interest rates? After years of extraordinary measures by central bankers around the world to stimulate economic growth, the fear is that unless these extraordinary stimulative measures are dialed back or reversed, monetary authorities will have no tools available when the next slowdown (or crisis) strikes. Leading indicators suggest no recession is looming, but the expansion that began in 2009 is now more than eight years old – one of the longest on record.

Putting some arrows back in the quiver now might be advisable, so long as it doesn’t jeopardize the economic expansion.

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