ST Explains: What higher rates mean for inflation, the economy and loans

Raising rates helps cool down demand-driven inflation, but the world now is facing inflation due to supply challenges. ST PHOTO: KELVIN CHNG
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SINGAPORE - Investors and consumers have had to grapple with the three Rs - rising prices, rising interest rates and the dreaded recession - for the past few weeks.

The United States central bank has hiked rates three times in the past four months to tame inflation, leaving benchmark rates between 1.5 per cent and 1.75 per cent.

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