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Economics

The Role of Central Banks in Controlling Inflation

Quick fact

Most central banks in major economies target an inflation rate of about 2% per year, and they adjust interest rates to steer the economy toward that target.

Why this is interesting

When you hear that the central bank 'raised interest rates,' you might wonder how that makes the price of your groceries go up or down. It’s a chain of actions that turns a simple announcement into a powerful force on your wallet.