Commercial interest Rates

In addition, interest rate hikes were by far not always followed by declining real estate stocks. Requests for the "right kind" of real estate are backed by a user community that has proven to be relatively robust. However, there was only modest new offering in the real estate sector, particularly in some towns and areas.

Rates of interest and commercial banking

Reader question: Could you please tell me the likely impact of an interest hike on a commercial banking institution? What negative impact can higher interest rates have on companies, especially in the building sector? Raising interest rates by the BBC would mean that commercial bankers would find it more costly to take out loans from the BBC.

As a result, the costs of inter-bank loans will rise and commercial credit institutions will usually raise their interest rates by an amount similar to that of the Bank of England. You will raise both savings and loan rates so that the overall return on the investment will be minimum. But commercial banking does not always keep pace with the Bank of England's key interest rates.

They too are trying to raise their spreads because they have been losing a lot in the crisis.