Ask AI: why are governments increasing interest rates when inflation is not caused by consumer spending

Governments increase interest rates when inflation is not caused by consumer spending in order to prevent the economy from overheating. When inflation is not caused by consumer spending, it can indicate a larger underlying problem within the economy, such as over-investment in certain sectors. If left unchecked, this can lead to an economic downturn. Increasing interest rates helps to cool the economy by making it more expensive for businesses to borrow money, in turn discouraging over-investment and helping to keep inflation in check.