4 ms·

The reason is nobody knows the correct rate to stop inflation and nobody wants to drive rates too much, as that also would have bad consequences.

• slaw 4y ago
  We know the correct interest rate. It is 2% above inflation. https://en.m.wikipedia.org/wiki/Taylor_rule https://en.m.wikipedia.org/wiki/Taylor_rule
• seper8 4y ago
  Better to do nothing than to make a mistake your political competition will point out...