Interview with Bank of England Governor Mark Carney

The video discusses the impact of interest rate changes on savers and borrowers. Savers will notice changes soon as products like ISAs reprice. Borrowers, especially those with fixed-rate mortgages, will see effects later. Many British households have fixed-rate mortgages, delaying the impact. Remortgaging now could save money due to lower interest rates. Ultimately, borrowing will become more expensive, but credit remains available.

What is one of the first effects of anticipated interest rate changes on savers?

• Decreased availability of credit

• Higher mortgage rates

• Repricing of savings products

• Increased borrowing costs

Why might many borrowers in the UK not immediately feel the impact of interest rate changes?

• They have no mortgages

• They have variable rate mortgages

• They have paid off all their debts

• They have fixed-rate mortgages

What percentage of new mortgages in the UK are fixed-rate?

• 50%

• 70%

• 100%

• 90%

What is a potential benefit for borrowers who remortgage now?

• Higher interest rates

• Decreased credit availability

• Increased borrowing costs

• Lower interest rates

How does the current economic environment affect borrowing costs?

• It decreases the availability of loans

• It has no effect on borrowing costs

• It makes borrowing more expensive

• It makes borrowing cheaper