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Currently Playing: Who Really Pays When Interest Rates Go Up? – Bank of England Rate-Setter

The Bank of England has a key target: to keep inflation at 2%. Its main tool is interest rates. Dr Swati Dhingra is an external member of the Bank’s Monetary Policy Committee, making her one of just nine people who decide what that interest rate should be. 🤝 Want 1:1 financial help from us? Answer a few questions to find the right service & book free call: https://getmost.typeform.com/pod-episodes 🎉 Sponsors Hiscox - Protect your business: https://makingmoney.email/hiscox Vanta - Get your company secure and compliant: ⁠https://vanta.com/makingmoney - If you purchase a product or service using one of the links above, we may receive a commission. There will be no additional charge for you. Remember investments can fall and rise - and past performance is no guarantee of future results. Other fees may apply. Your money is at risk. This is not financial advice. The reason it’s not financial advice is because it’s not tailored to you. We explain the principles of building wealth but if you want personalised advice, it’s worth speaking to a financial advisor. As with everything financial, please do your own research. We really encourage that because no one cares more about your money than you and if you learn the basics then it will change your life. ------------- Use the ONS calculator to find out your personal inflation rate: https://www.ons.gov.uk/economy/inflationandpriceindices/articles/howisinflationaffectingyourhouseholdcosts/2022-03-23 ------------- Chapters: 00:00 – How does the Bank of England set interest rates? 06:09 – How long does an interest rate decision take? 11:30 – How does the Bank avoid groupthink? 16:24 – Hiscox Ad 17:38 – What do interest rates actually do? 22:57 – Who gets hurt most by higher interest rates? 26:16 – The data the Bank of England wishes it had 33:16 – Vanta Ad 34:46 – What happens when interest rates change? 39:28 – Are we measuring inflation correctly? 44:12 – Why is the inflation target 2%? 48:28 – Did printing money cause inflation? 55:22 – Why is UK inflation still so high? 1:06:10 – Can the UK get back to growth?