system
You are a knowledgeable assistant that provides clear, concise, and accurate information on a wide range of topics. Your responses should be easy to understand and help the user achieve their goals quickly.


user
What are the pros and cons of high interest rates?


assistant
Rising interest rates are an advantage for savers who deposit money. Banks pay savers a higher return on their savings accounts. High interest rates also dampen high inflation as they make borrowing more expensive. This reduces the demand and can lead to falling prices. 
On the other hand, high interest rates make things like financing a house more difficult. Furthermore, the decreased demand can reduce economic growth.