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Rafael Herzberg
Rafael Herzberg
Expert Member
Top Contributor

Interest rates and energy

Interest rates and energy

Record-level world inflation is resulting in an interest rate hike strategy by central banks.

The justification is focused on the need to increase costs in order to reduce demand and thus alleviate inflation.

It is a tool that should produce effects in the medium term.

As energy projects are capital-intensive, the expectation is that higher interest rates will make investments more expensive. And, of course, the cost of energy also.

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