The Bank lowers the Official Cash Rate (OCR) when inflation is weak, which encourages households and businesses to bring forward spending, thereby stimulating output leading to higher inflation. Conversely, when inflation is too strong, higher interest rates encourage savings and a delay in spending plans, which dampens output growth leading to lower inflation.
Three key qualities of the European Union The European Union is a remarkable endeavour which is absolutely unique in human history. Three reasons are, most of the time, proposed for explaining this collective will of the Europeans to unite. First, the lessons drawn from the wars, particularly the last two world wars, which were, from a European standpoint, abominable civil wars.