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by epistasis
859 days ago
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Whoa, their viability as a company is not under question. The only thing under question is whether future long-term agreements will include inflation protection. When interest rates rise tremendously, long term investment gets pulled way back. That's the entire point of hiking interest rates, to make companies like Orsted slash their growth rates. It does not put Orsted at risk for collapse. |
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> That's the entire point of hiking interest rates, to make companies like Orsted slash their growth rates.
I highly doubt that that's the discussion being held at the meetings where the rates are being set, i.e. I've never heard the likes of the US Fed or of the ECB saying "we want to slow our most dynamic sector of the economy by increasing interest rates", but I could be wrong on that.