How does increasing interest rates impact inflation?
Increased interest rates raises the cost of borrowing money, which tends to reduce spending and ultimately inflation.
Below is an instruction that describes a task, paired with an input that provides further context. Write a response that appropriately completes the request.
### Instruction: How does increasing interest rates impact inflation?
### Input: 
### Response: Increased interest rates raises the cost of borrowing money, which tends to reduce spending and ultimately inflation.