Economy Jargon
Base rate
The rate of interest set by the Bank of England on which other Banks consider basing their rates.
Inflation - how does that affect me?
Rising inflation means that the price of certain goods has risen. This not only means that it will cost you more to buy certain goods but it also means that your money is worth less. This is why it is important to ensure that the net (after tax) interest rate on any savings account is higher than inflation.
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