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 must continue to monitor the economy and global events carefully when making rate decisions.

What are interest rates?

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

What is legal tender?

Many people are confused about this – it is more about settling debts than how you pay for things in shops.

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.

What is inflation?

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

What is money?

Feathers, shells and even teeth … money has taken many forms over time.

What is the economy?

An economy is a system for distributing limited resources… confused? Keep reading.

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 GDP?

It is perhaps the most widely discussed economic concept – but what is it and how do we measure it?

What is deflation?

Falling prices are not always cause for celebration.

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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