low interest rate

Your Questions About Uk Banks Interest Rates

Michael asks… What effect does changing the UK bank rate have on inflation, AND WHY? Conventional, and generally accepted wisdom is that increasing interest rates cuts the supply of money and therefore reduces inflation. But:- 1. If the price of money goes up, why don’t suppliers of goods and services INCREASE their prices to compensate […]

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Your Questions About Uk Banks Interest Rates

Michael asks… How do interest rates relate to savings rates? In the UK, the Bank of England has them set @ 0.5% and I know this is to stimulate the economy because we are in a deflationary period. I know that the banks savings rates change in accordance to the bank of England’s rates but […]

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