Advertisement
UK markets open in 1 hour 6 minutes
  • NIKKEI 225

    38,004.26
    +375.78 (+1.00%)
     
  • HANG SENG

    17,680.55
    +396.01 (+2.29%)
     
  • CRUDE OIL

    83.94
    +0.37 (+0.44%)
     
  • GOLD FUTURES

    2,346.50
    +4.00 (+0.17%)
     
  • DOW

    38,085.80
    -375.12 (-0.98%)
     
  • Bitcoin GBP

    51,594.56
    +213.12 (+0.41%)
     
  • CMC Crypto 200

    1,389.20
    +6.63 (+0.48%)
     
  • NASDAQ Composite

    15,611.76
    -100.99 (-0.64%)
     
  • UK FTSE All Share

    4,387.94
    +13.88 (+0.32%)
     

How does inflation affect interest rates?

Inflation and interest rates have an inverse relationship. Central banks across the globe traditionally respond to rising inflation by increasing interest rates. The higher the inflation rate, the more interest rates are likely to rise.