I’m no economician, but 1. this price hike has nothing to do with inflation, and 2. Interest rates aren’t used to bring prices down, they’re used to bring inflation down.
The price hike causes inflation, as the tariff is passed on to consumers. Interest rates control the growth in the money supply, with less physical money available the velocity of money slows and prices fall, which causes deflation.
I’m no economician, but 1. this price hike has nothing to do with inflation, and 2. Interest rates aren’t used to bring prices down, they’re used to bring inflation down.
The price hike causes inflation, as the tariff is passed on to consumers. Interest rates control the growth in the money supply, with less physical money available the velocity of money slows and prices fall, which causes deflation.