The Economy: 2. Interest Rates and Mortgage Rates
Why does the interest you pay on your credit card or your mortgage rate go up and down?
Why does the interest you pay on your credit card or your mortgage rate go up and down? What’s the Bank of England got to do with it all? In this episode, Tim Harford explains why the banks need to charge you interest when you borrow money and explains why the Bank of England might put interest rates up. Economic historian Victoria Bateman tells us why the Bank of England first lent money to the government. Spoiler alert…. it was to wage war.
Everything you need to know about the economy and what it means for you. This podcast will cut through the jargon to bring you clarity and ensure you finally understand all those complicated terms and phrases you hear on the news. Inflation, GDP, Interest rates, and bonds, Tim Harford and friends explain them all. We’ll ensure you understand what’s going on today, why your shopping is getting more expensive or why your pay doesn’t cover your bills. We’ll also bring you surprising histories, from the war-hungry kings who have shaped how things are counted today to the greedy merchants flooding Spain with silver coins. So if your eyes usually glaze over when someone says ‘cutting taxes stimulates growth’, fear no more, we’ve got you covered.
Guest: Richard Davies, Professor of Economics at Bristol University
Producer: Phoebe Keane
Researchers: Drew Hyndman and Marianna Brain
Editor: Clare Fordham
Theme music: Don’t Fret, Beats Fresh Music
A Â鶹Éç Long Form Audio Production for Â鶹Éç Radio 4
Last on
More episodes
Broadcasts
- Tue 8 Nov 2022 13:45Â鶹Éç Radio 4
- Fri 13 Jan 2023 14:45Â鶹Éç Radio 4
Podcast
-
Understand
Adam Fleming unpicks some of the key elements of the UK election.