The rationale for low interest rates is to accommodate investment financing and
avoid upward pressure on the exchange rate.
Not exact matches
Any external
upward pressure on interest rates beyond a fraction of a percent will have to be rapidly offset by a large reduction in the outstanding monetary base in order to
avoid a deterioration in the value of money relative to goods and services (i.e. inflation).
It is just too expensive, and puts a lot of
upward pressure on the fees — precisely what we want to
avoid.