eli5: who or what is profiting from the MASSIVE interest rate rises in Australia? Is it the banks holding your mortgage? The Government?!.. basically, who is loving life right now?
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Australia’s (and the USa’s) central bank hold the financial reserves and releases the money supply. If the economy has too much inflation, they try to hold it down by increasing the rate at which banks can borrow money from the government. So banks then charge more to borrowers, but also, give better savings and CD rates to bank customers. Which increases savings and decreases spending, and decreases inflation.
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