Shaun's name origin is Hebrew, and the name Shaun means God is gracious. Shaun is an alternate spelling of John (Hebrew). Shaun is also a form of Sean (Irish, Hebrew).
Evaluation of higher interest rates. 1  Higher interest rates affect people in different ways. The effect of higher interest rates does not affect each consumer equally. 2  Time lags. The effect of rising interest rates can often take up to 18 months to have an effect. 3  It depends upon other variables in the economy.
Therefore, interest rates are used to achieve this target. If inflation falls to below 2% the MPC will cut rates to maintain economic growth. There is no need for high interest rates when inflationary pressures are low. For example: If you had an inflation rate of 1% and interest rates of 7%. There is a very high real interest rates (7-1 = 6%) Therefore, this would encourage saving and discourage borrowing and spending. This is likely to cause a recession so Central Banks would avoid it.