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From course:

Economics A Level (DONEEEEEEE)

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Question:

How does the Bank Rate influence the Interest Rate on Citizens?

Author: eric_galvao



Answer:

-If the Bank Rate Increased, it becomes more Expensive for Banks to Borrow, so they will raise their Interest Rates to discourage Borrowing and Encoruage Savings [Deposits] -The Opposite is the Same - Low Bank Rate, More Cheap to Borrow, Lower % Rates


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