I am trying to understand how interest rates are influenced by central banks purchasing government bonds.
When Googling "how does buying bonds increase interest rate" I find the following:
When the Federal Reserve buys bonds, bond prices go up, which in turn reduces interest rates. Source: Investopedia.com
I understand that interest rates would go up IF the central banks would print money to buy bonds. Because printing money would result in more money supply, and thus inflation, which the economy would compensate by raising interest rates.
But I do not understand how buying bonds WITHOUT printing money would influence interest rates.
I also understand that bonds are mostly a fixed return rate. And when a central bank purchases a lot of bonds the price of that bond increases and the return rates of those bonds decrease. But does a decrease in return rates automatically influence the interest rate? Ain't interest rates independently determined by money committees?
Basically I am just trying to understand how central banks can keep interest rates artificially low by buying bonds.