Central Bank Chiefs Differ on Impact of Rising Interest Rates

The governor of France's central bank opposes raising the inflation target for the European Central Bank.
Higher interest rates are meant to curb inflation but the full impact on economies is still unknown.
Some economists argue for increasing inflation targets but central bank leaders disagree with that approach.
Although rates are rising, painful recessions have not yet occurred in most economies.
The influence of higher borrowing costs may be felt later this year through declining profits and slowing growth.