Britons would struggle to pay bills if interest rates doubled
Fifty-two percent said they would struggle to pay council tax and energy bills while 44 percent would need to use their savings to make ends meet. Setting interest rates is one of the ways the Bank of England can try to control the economy.
If interest rates go up, it can make borrowing more expensive, especially for homeowners with mortgages, and can rein in spending in favour of saving. Lower interest rates tend to increase spending.
People appear to understand the impact of higher inflation rates, the poll found. Three-quarters of those quizzed said correctly that repayments would increase for those not on fixed-rate mortgages.
But Ipsos Mori, who surveyed 2,100 adults, said just three in 10 knew the current interest base rate was 0.1 percent. One in five incorrectly thought it was 0.5 percent.
