This is Money Podcast How low will interest rates go... and will they stall earlier than we think?
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Dec 19, 2025 Interest rates have dropped to a record low, sparking debate on how much lower they'll go. The team dives into what the new base rate means for borrowers and savers, and shares tips on navigating mortgages and savings. They also explore Gen Z's savviest savings hacks from social media. A warning about counterfeit goods this holiday season provides essential shopping advice, and a curious neighborly dispute raises legal questions worth considering. Tune in for financial insights and seasonal tips!
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Neutral Rate Is An Inflation Tool
- The Bank targets 2% inflation, so 'neutral' rates are judged by where inflation will settle, not general economic health.
- That focus explains why rates might remain higher if inflation risks persist.
Stop Leaving Cash In Low-Rate Accounts
- If you must use easy-access accounts, hunt for the best rate and move money out of low-paying current accounts.
- Consider regular savers or one-year fixes to build the habit and secure higher rates.
Try A Structured Savings Challenge
- Try the 100-envelope challenge or a no-spend month to rapidly accumulate a lump sum.
- Use the result to move funds into a fixed or invested account rather than spending it.