MarketsExplainer
What Happens When a Central Bank Changes Interest Rates?
From mortgages to exchange rates, one policy decision can travel through an entire economy.
Daniel Cho7 min read
Markets topic
Interest Rates
Interest rates are the price of borrowing money and the reward for saving it, set by markets and heavily influenced by central banks.
Why it matters
Rates ripple through mortgages, loans, savings, business investment and asset prices. Few numbers touch more parts of financial life.
What this topic covers
- Policy rates
- Market interest rates
- Fixed and variable borrowing
- Rates and asset prices
- Real interest rates
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This page is for informational purposes and does not constitute individualized financial advice.