3 ms·

To clarify, you're talking about nominal interest rates. Central banks have little or no control over real interest rates.

• RobertoG 6y ago
  The difference between nominal and real interest rate is inflation and the main mandate of Central Banks is the control of inflation. So, I don't think it's accurate to say they have no control.
  • lottin 6y ago
    Central banks control inflation by setting nominal rates. These two rates are not independent. Setting real interest rates would require the ability to control both nominal rates and the inflation rate independently from one another.
    • RobertoG 6y ago
      I think we agree on everything.