Explained in plain English
Who pays interest?
When the Bank of England holds interest rates, it affects how much people and businesses pay to borrow money. If you have a mortgage or a loan, the interest you pay is linked to these rates. Banks also pay interest to the Bank of England when they borrow from it, which then influences the rates they offer customers.
Stories that explain this
Pound falls to $1.337 as the Bank of England holds interest ratesQuestions this opens up
What is a mortgage? Who borrows from banks? Why do banks pay interest?This explainer came from a news story
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