WABI interviews Agrrawal about how rising interest rates will affect Mainers

Pankaj Agrrawal, professor of finance at Maine Business School, spoke to WABI (Channel 5 in Bangor) about how rising interest rates will impact Mainers. Aggrawal says the rise in inflation happened due to a combination of imbalance in supply and demand, overseas conflict, supply chain shortages, COVID-related impacts on unemployment and the housing market. Raising interest rates now is a way to slowly drive down consumer demand, realigning it with decreased supply. ”Now that the interest rates are going up, it is going to create a pressure on the mortgage rates. Being careful with your work, being careful with your spending, the world has changed. Things are changing, and being adaptive is difficult. But, as you know, being adaptive is the number one trait of being a successful species,” Aggrawal said.