What is the current CPI rate? What is the UK target inflation rate? What is in the CPI ‘basket’? The difference between CPI and CPIH The difference between CPI and RPI How is CPI used? The consumer prices index (CPI) rate increased to 3% in the year to January 2025, up from 2.5...
A simple definition of “interest rate” is the cost of borrowing money. When interest is charged on a loan, it means you’ll have to pay back more than you borrowed. But interest rates also apply to your savings — which are, in effect, a loan you’re extending to the bank. When...
The interest rate set by the Bank of England (BoE) is known as the base rate. The current rate was decided on 6 February 2025, cut to 4.5%, after being held at 4.75% in December last year. This is the lowest rate sinceMay and June 2023. ...
Usury refers to charging an exorbitantinterest rate. In some religions, it is a sin to charge interest on loans, no matter how small. When London-based lenderWonga was charging an APR of 5,853%, the FCA made the company pay redress. The FCA said Wonga was guilty of unfair debt collecti...
Nevertheless, it is worth assessing the potential impact of further cuts. Barring any shocks, we are on a downward trajectory and the International Monetary Fund (IMF) thinks UK interest rates will fall to 3.5% by the end of 2025.
What is the impact of higher interest rates on the value of a currency and a nation's net exports?Currency Value:The value of a currency is dependent on the demand and supply of the currency. When the demand or supply changes, the value of the currenc...
Interest rate parity is a non-arbitrage condition relating real risk-free returns between two countries. The parity is used as a model for analyzing the dynamics of exchange rates in the short-run, where demand for foreign currency is driven by demand for investments....
Since dividends are paid from a company's free cash flow, a company's ability to generate free cash flow is critical to long-term dividend payments. Too much debt means more of the company's cash outflows are controlled by bondholders, whose interest payments are mandatory, rather than ...
Past performance is no guarantee of future results, but the 10-year return of ETFs can be a starting point. Marguerita ChengFeb. 20, 2025 7 Best Recession Investments In a recession, prioritizing liquidity and safety ensures access to funds while maintaining steady, low-risk returns. ...
What is the current standard variable rate? Different lenders can have different SVRs so there isn’t a single current standard variable rate. Lenders will usually show their current SVR on their website and should inform standard variable rate mortgage borrowers if their SVR is changing. ...