Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the principal. Set by central banks, they influence economic activity by regulating spending, saving, and investment. Higher rates typically slow borrowing and spending, while lower rates encourage them. Central banks adjust rates to control inflation and stabilize the economy.
Understanding the relationship between inflation and interest rates is crucial. It's a key aspect of economic literacy. Inflation and interest rates - if they were a couple, their relationship status…
The Bank of England (BoE) decided to maintain interest rates at 5.25%, which surprised absolutely no one. Like a well-worn playbook, the central bank has kept rates steady since August 2023.
Mortgage Rates Rising - So, here’s the scoop: Despite crossing our fingers for a drop in the Bank of England base rate, it seems like some mortgage providers missed the memo and decided to hike up their interest rates instead. Yep, not the news homeowners were hoping for when they were dreaming of smaller mortgage payments dancing in their heads.
