Interest Rate Change
Increase/decrease in borrowing costs.
Real World
Between 2022 and 2023 the Bank of England raised rates 14 consecutive times; housebuilder Barratt Developments reported a sharp fall in new home reservations as mortgage costs surged.
Exam Focus
For 'analyse' questions, build a chain of consequences: rate rise → higher borrowing costs → reduced investment → lower economic growth.
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