In the short run, you can get lower interest rates by  Page 8 of 10  surprising people with higher inflation. But once they wake up – and investors aren’t slow to see higher inflation – interest rates have to rise. For this reason, one of the most effective ways for lowering interest rates is to keep inflation low and predictable.
On the domestic front, distress is mainly related to the evolution of public finances and, to a lesser extent, the widening of the current account deficit.