Rates

Policy rates, borrowing costs and household cash flow

These concepts are connected, but changes do not pass through to every household at the same speed or size.

Policy rates

A central bank policy rate is a benchmark used in monetary policy.

Borrowing rates

Lender funding costs, credit risk, product structure and term can influence borrowing rates.

Household cash flow

The effect depends on whether a household has variable-rate debt, upcoming renewals, savings income or other exposures.