1When the central bank raises interest rates, borrowing money becomes more expensive for households and firms.
2A family with a large mortgage may see its monthly payments rise by hundreds of pounds.
3Small businesses often delay their plans to expand because new loans cost more than before.
4Savers, on the other hand, finally receive a far better return on their bank deposits.
5The currency usually strengthens, which makes imports cheaper but hurts the companies that sell abroad.
6Factories that depend heavily on exports may cut shifts or even lay off their workers.
7House prices often cool down as fewer buyers can afford large mortgages at higher rates.
8The central bank watches the unemployment figures very closely before deciding on its next move.
9If inflation falls back too quickly, the bank may cut rates again in order to support growth.
10Each single decision takes many months to work through the economy, so mistakes are costly.
11That is precisely why the bank governors choose their public words with such unusual and deliberate care.