Hi, my name is Geoff 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 left over 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 pay day 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.