The Slow Burn of Central Bank Policy | Why Rate Hikes Takes Years to Bite
Edited By WION Video Desk
Published: Jun 17, 2026, 10:12 IST | Updated: Jun 17, 2026, 10:12 IST
Why does it feel like central bank interest rate hikes have little immediate effect on your wallet or the broader economy? In economics, this is known as the "transmission lag"—a complex, structural delay between a policy decision made in a boardroom and its eventual impact on prices, employment, and growth.
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