Why do interest rate changes matter to me?
Because they change what you pay on loans and earn on savings. A rate rise on a large mortgage can add a meaningful chunk to your monthly outgoings.
// business-finance › Impact Metrics
Interest Rate Change Impact Calculator
See how a change in interest rate (e.g. a central-bank move) changes the yearly interest on a loan or balance.
annual interest = balance × rate ; compare old vs new rate
Frequently asked questions
Is this how my mortgage actually works?
It is a simplified annual-interest view. Real mortgages amortise (mix interest and principal each month), but this captures the direction and rough scale of a rate move's bite.
Why show a monthly figure too?
Because budgets are monthly. Seeing the change per month makes the impact of a central-bank decision feel concrete rather than abstract.
Who sets these rates?
Central banks set a benchmark rate, and lenders price their loans off it. When the benchmark moves, variable-rate borrowers feel it fairly quickly.
Does a rate cut help borrowers or savers?
Borrowers, since loans get cheaper. Savers earn less. A rate rise flips that, rewarding savers and squeezing borrowers.