What are the latest decisions made by central banks?
Recently, central banks like the Federal Reserve and the European Central Bank have raised interest rates to combat inflation.
How do these decisions affect the economy?
Higher interest rates can slow down borrowing and spending, which may help reduce inflation but can also slow economic growth.
What are the potential risks of these decisions?
The risks include a potential recession if borrowing decreases too much, and increased unemployment as businesses may cut back.
Are there any countries that are taking a different approach?
Yes, some countries, like Japan, are maintaining low interest rates to stimulate growth despite global inflation pressures.
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