Effect of Interest Rate Raise on Economic Recovery
Jaap de Jonge, Management Consultant, Netherlands
I agree a raise of the interest rate normally has a NEGATIVE effect on the economy resuming growth. Because it makes it relatively more interesting for those who have money to put it on some savings account (bank) instead of investing it (in shares/stock, which then allows companies to invest and grow, which then stimulates the economy). And indeed @Onyango Lucius
is right that even certain investors may anticipate further future interest rates so they would keep their money at hand in case that happens.