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They say that everything has its price and that is true even for money. Interest rates are the price of money – although strictly speaking interest rates are more accurately the price for borrowing or lending money. Anyone who has a mortgage, or has taken out a loan with their bank to fund their business or pay for a holiday knows that interest rates matter. Equally, anyone who has tucked their nest egg away in a savings account will know that the interest rate is one of the most important parts of the deal.

Just as the price of a good or service will affect how much demand and supply there is, so interest rates will influence how keen people ...

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