3 Reasons High Interest Rates Haven't Stopped People From Spending
Summary
Despite high-interest rates, consumer spending remains robust for three key reasons. Firstly, individuals are confident in their job security and income prospects, encouraging them to maintain or increase spending. Secondly, pent-up demand from lockdowns and restrictions prompts people to make purchases they postponed during the pandemic. Lastly, many consumers opt for borrowing despite higher rates, leveraging credit to fulfill immediate needs or desires. This resilience in spending defies conventional wisdom, suggesting that while interest rates influence behavior, other factors like confidence and pent-up demand play significant roles in shaping consumer spending habits.
Investopedia
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