Lower interest rates can stimulate economic activity and raise prices for investments while increasing the risk of higher inflation.
November 20, 2025
high
general
Broad macroeconomic relationship between policy rates, asset prices, and inflation.
Monetary hawks generally favor higher interest rates and are skeptical of large-scale quantitative easing and expansive central-bank balance-sheet interventions, viewing such policies as potentially inflationary or risky.
October 27, 2025
high
conceptual
Defines the typical policy stance described as 'monetary hawkishness' in debates over central-bank actions like QE and emergency lending programs.
Lower key interest rates tend to make gold more attractive as an investment relative to interest-bearing assets.
October 17, 2025
high
general
Interest-rate movements influence relative attractiveness of non-yielding assets like gold.
Lowering a central bank's main interest rate can increase inflationary pressure because cheaper borrowing costs tend to raise aggregate demand and push up prices.
high
causal
Monetary policy affects inflation through its influence on borrowing costs, demand, and spending.
Higher interest rates can reduce inflation because they raise borrowing costs for households and businesses, which tends to lower spending and aggregate demand.
high
mechanism
General monetary policy mechanism linking interest rates to inflation.
Uncertainty about future central bank interest-rate decisions is associated with increased short-term swings in stock prices and higher market volatility.
high
market_dynamics
Links policy-rate uncertainty to equity-market behavior.