Central banks are absolutely committed to low rates because higher interest rates would turn the boom into bust, and would collapse our production and employment structure now based on a system of ultra-low rates.
In the short term, a central bank can drive up stock prices by lowering the interest rate. In the longer term, it could sap the strength out of an economy.
Under an inflationary monetary scheme, big financial-sector players who get the new money first benefit the most. Ordinary households down the line then bear the brunt of price inflation.
