When interest rates on loans are high, it leaves people with less disposable income, which leads to less consumer spending. Depending on the economic situation, this could be good or bad, as it would lead to a recession. But that may be exactly what is needed to reduce spending if the economy is currently experiencing overinflation. The government could intentionally push the market into a recession rather than risk inflation levels that are too high. On the other hand, if the economy was already in recession, this would only make the recession worse. In the situation where the economy is currently in recession, the government will instead change the overnight rate in order to thereby lower the interest rates on loans in order to provoke consumers.