The world of central banks and their policies, which include interest rates, may seem abstract — but they affect everyone.
Interest rates — the rate at which you are charged or rewarded — are set by central banks, like the Fed or Bank of England.
Pros and consHow consumers are affected by interest rates varies according to whether rates are higher or lower.
On the flip side, higher interest rates can boost your savings, Mould added.
Interest rates versus inflationInterest rates often go hand in hand with inflation (rising prices).
Persons:
James McManus, —, Sarah Coles, Hargreaves Lansdown, Russ Mould, AJ Bell, Mould, McManus
Organizations:
CNBC, . Federal Reserve, European Central Bank, Bank of England, Fed