ASMR_NAKED_COWBOY t1_iuhbf17 wrote on October 31, 2022 at 10:09 AM

Reply to comment by Outis7379 in Let’s reflect on Jpows rate hikes up until now. by LessTalkMoreRock1

When interest rates get high enough people will have to use their money to pay interest/pay off debt to avoid paying more interest instead of buying things. That's when it will slowly get fixed. We need rates that are higher than inflation.

nerfyies t1_iuhcibm wrote on October 31, 2022 at 10:24 AM

It more of a time affect, people are just eating away their saving to continue buying the same stuff they did last year when prices were 10% less even though they are not earning 10% more. Combine this with the increased interest payments and people will run out of money quick. I would say spending will be good till holiday season but then its a rough winter.