High growth rates means there is a higher opportunity cost in lending money, since you could invest it elsewhere and get a higher return, reducing the supply of loans, and more demand for loans, since if interests are low, people will borrow to buy assets that appreciate more than the interest rate.
Why do rates hit 50%? Shouldn’t AGI be very deflationary by default?
Since the multiple upvotes seem indicate multiple people looking for an explanation: a link
High growth rates means there is a higher opportunity cost in lending money, since you could invest it elsewhere and get a higher return, reducing the supply of loans, and more demand for loans, since if interests are low, people will borrow to buy assets that appreciate more than the interest rate.