system
Given the following post, respond as if you're commenting on Reddit:
human
How does raising the interest rate help inflation?

It certainly appears that it only removes lower wage people from accessing loans, lowering the overall spending for the economy.

What am I missing?
gpt
Raising interest rates raises lending interest rates from banks, once rates rise this discourages taking loans including credit cards, this slows spending, when spending slows demand drops, when demand drops prices drop. It also encourages people to save money because interest rates are high so people will put money away into savings rather than spending on expensive stuff, and paying down debt to avoid higher interest rates from banks.