Global economy

Monetary policy is working its way through our economies

19/09/2023 PNG

The tightening of monetary policy is working its way through economies. Alongside the rapid increase of policy rates, interest rates for new corporate loans and new mortgage loans have increased.

While the rising borrowing costs are painful for households and firms, dampening households’ and firms’ demand through higher borrowing costs is a standard channel through which monetary policy normally takes effect.

Read more in OECD Economic Outlook, Interim Report September 2023

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