Interest rates impact the financial sector, influencing investment decisions, asset prices, and market stability. Moderate interest rates foster an environment conducive to investment, as businesses can access affordable financing to fund
While you may need to pay tax on interest if you go over your PSA, you don’t pay any tax on interest with Individual Savings Accounts (ISAs). They’re tax-efficient savings or investment accounts available to UK residents.
When it comes to how the BoE makes interest rates decisions and sets interest rates, it is essential to know the role of the Monetary Policy Committee (MPC). Members of the MPC meet eight times a year after a briefing by staff from the central bank.