IMF | Rising Rates May Trigger Financial Instability, Complicating Fight Against Inflation | European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources

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IMF | Rising Rates May Trigger Financial Instability, Complicating Fight Against Inflation | European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources

Banking systems are largely insulated from inflation, but vulnerabilities at some banks could lead to tradeoffs between containing inflation and protecting financial stability Before the pandemic, investors worried about how persistently low inflation and interest rates would crimp bank profits. Paradoxically, they also worried about bank profitability when post-COVID reopening sent inflation and central bank interest rates soaring. The failure …