Lender beware

When inflation skyrockets, central banks increase interest rates to slow spending. Here, the author details why periods of high inflation might lead to high rates of fraud in the lending industry and what lenders can do about it.

In the past year, inflation has dominated news headlines around the world, and you’ve probably felt some of its effects in your wallet as prices on everything from food and fuel to cars and houses shot up. Because inflation means higher prices, the usual remedy from central banks is to slow spending by hiking up interest rates. And while higher interest rates might ease inflation, those higher rates can mean trouble for lenders and consumers.