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Raising the rate, the Central Bank limits not only

demand, but also the ability of producers belgium telegram data to take out loans to expand production.

— In conditions of rapid growth, business receives good profit and can invest it, and there is always the opportunity to attract additional funds from new shareholders. If we expand the horizon of analysis a little, we will see that “in the long run” producers will also end up in the black, because with our actions we do not take away demand from them irrevocably, we only distribute it evenly over time, making this demand more predictable and stable.

If you do not raise rates in such a situation

then all excess demand will go into price increases. Yes, at the moment, producers will earn extra money, but at the next stage they will face a drop in demand for their goods and services, because increased inflation will significantly devalue the income of their clients.

At the same time, the jump in inflation

will lead to an increase in rates on long-term alb directory loans, which  are needed first and foremost for investments in expanding production. As a result, after a short the training program is period of takeoff, the economy may fall into a crisis. Our task is to create conditions for sustainable, balanced economic growth.

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