An interest rate is the reward for saving and the cost of borrowing expressed as a percentage of the money saved or borrowed.
At any one time there are a variety of different interest rates operating within the external environment; for example:
The Bank of England uses policy interest rates to help regulate the economy and meet economic policy objectives.
The Bank of England Base Rate has been very low and stable for several years.
What might happen if interest rates start to rise? Possible effects might be:
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