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Bangkok Post
Bangkok Post
Business

Higher Interest Rates Can Take a Long Time to Bring Down Inflation

The full impact of the Bank of England's recent interest-rate moves won't be felt until the end of 2025, a bank official said recently. (Photo: Bloomberg)

The world's central banks face a nail-biting wait.

They have raised interest rates this year at the fastest pace in decades. But those hikes work with what economists call "long and variable" lags so central banks might not know for years if they have tightened too much, or not enough.

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