Economics – The Complete Course | Micro & Macro Made Simple with Mr. G - Interest Rates Explained | GCSE Economics with made easy!

Hallo, it’s Mr. G your Business and Economics teacher. In this GCSE Economics lesson, we explore Interest Rates — one of the most important concepts in understanding how the economy works. You’ll learn what interest rates are, how they are set by the Bank of England, and how they influence saving, borrowing, and investment across the economy. We break down key ideas such as the base rate, how commercial banks use it to set their own rates, and how changes in interest rates can affect consumers, businesses, and government decisions. We also explain why higher interest rates encourage saving but reduce borrowing and spending, while lower interest rates tend to increase borrowing and investment. Real-life UK examples are used to help you understand how interest rates can impact mortgages, loans, and overall economic growth. By the end of this lesson, you’ll be able to analyse how changes in interest rates affect demand, inflation, and business confidence — key skills needed for your GCSE Economics exam. Thank you for listening to Mr. G. Please subscribe to our channel. Please like, subscribe, and comment.