How Interest Rate Rises Affect the Average Person
Interest rate rises affect ordinary people because they change the cost of borrowing money and the reward for saving money. When a central bank raises its interest rate, the effects can spread throughout the economy, influencing mortgages, rents, savings, spending, employment, house prices and even government finances. The impact is not the same for everyone. A person with a large mortgage can be affected very differently from someone with substantial savings. However, for many households, especially those carrying significant debt, …
