Why do interest rates matter to me?
Hi, my name is Jeff and I work at the
Bank of England. Today I’m going to tell you about interest rates. Interest rates were cut sharply in 2009 and remain extremely low by historical standards. With rates so low for so long, do they
really matter anymore? Yes, they do. Whether you’re running a business or a
family on a budget, interest rates continue to affect
our daily lives and have a big impact on what’s leftover
to spend on essentials each month. For most, interest payments on a
mortgage are one of the biggest outgoings. Covering the cost of spending on credit
cards and payday loans can also be a big drain. Many of those with savings rely on
interest payments from the bank to provide essential income to live on. So, whether you’re a saver or a borrower, the level of interest rates for you and your
family really does matter.