Suppression of interest rates

[John_James]

@K

Can central banks suppress interest rates indefinately? Let us say that they are increasing the money supply by 20% each year, this causes the purchasing power of money to go down aproximately 20% each year and interest rates would have to go up to adjust for this fact in order for people to lend other people money.

But now the central bank comes in and provides free money for people, can this then suppress market interest rates forever or will interest rates rise on the market in order to take into account the increased money supply and subsequent inflationary loss?

No, interest rates are only a part of a monetary system. The value of the money itself is a lot more important. See:

“the market determines interest rates”