Explainers

Want to learn more about money and how the economy works? Explore our knowledge bank of short explainers

Topics

Learn about the economy

Inflation and interest rates

Money, payments and spending

Banks, borrowing and saving

Most read explainers

Why are interest rates high and how quickly might they fall?

We need to make sure inflation stays low. So, we must be careful not to cut rates too quickly or by too much.

What are interest rates?

Interest is the cost of borrowing money or the reward for saving.

What will happen to inflation? 

We expect inflation to be lower and more stable than it has been over the past two years.

What is legal tender?

Many people are confused about what legal tender means. It’s actually about settling debts rather than how you can pay for things.

What is the Prudential Regulation Authority (PRA)?

The PRA supervises around 1,500 financial institutions including banks and insurance companies.

What is Islamic finance?

Money management and business dealings that are compatible with Islam.
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The basics

What is money?

Feathers, stone wheels… even teeth. Money has taken many forms over time.

What is the economy?

It's a word you can't avoid. But when put on the spot, many people struggle to say what it means. So, where to start?

What does the Bank of England do?

The Bank of England is unlike banks you see on the high street or use for online banking. Instead, it is the central Bank of the UK.

What is inflation?

Inflation is when prices rise and how quickly they do so is called the rate of inflation.

What is GDP?

Perhaps the most talked about economic concept. But what is it and how do we measure it?

What is the digital pound?

The digital pound would be a new type of money issued by the Bank of England alongside cash.

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