When central banks raise interest rates, the impact is felt far and wide. Mortgages become more expensive, house prices might fall and unemployment can rise. So why do central banks do it? This film tells you why. 00:00 - Why should you care about rising interest rates? 00:45 - What are interest rates? 01:36 - What do central banks do? 02:14 - Why do central banks raise interest rates? 03:12 - How do raised interest rates affect consumers? 04:30 - How do raised interest rates affect businesses? 05:20 - What are the risks of raising interest rates? 06:05 - How do interest rates affect inflation? Sign up to our weekly finance newsletter to keep up to date: https://econ.st/3P3zTG8 Watch our video on whether higher inflation is a cause for concern: https://econ.st/3ttKLnN Listen to our podcast on whether interest rates will trigger a recession in America: https://econ.st/3M0x2ef Why interest rates may rise sharply to fight inflation: https://econ.st/3NghS60 Which housing markets are most at risk? https://econ.st/3z8FeXi Is Turkish President Erdogan’s monetary policy as mad as it seems? https://econ.st/3t797Du Why are investors worried about recession in America? https://econ.st/3z51nFX Do the poor face higher inflation? https://econ.st/3NGON3G Has the Federal Reserve made a mistake on inflation? https://econ.st/3t5YTDl