
How Central Bank Interest Rate Decisions Reach Your Mortgage
A committee sets one number, and months later your monthly payment changes. The chain between the two has several links, and each one absorbs part of the move.
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A committee sets one number, and months later your monthly payment changes. The chain between the two has several links, and each one absorbs part of the move.

The headline rate is an average across a basket most households do not actually buy. Here is what the different measures capture and why they diverge from lived experience.

Behind the ceremonial bell-ringing sits a process of nine to twelve months, several sets of advisers, and a pricing decision that determines who captures the value.

Modern supply chains are optimised for cost under normal conditions. That optimisation is exactly what makes them propagate shocks so efficiently.