{"id":57326,"date":"2023-07-31T19:49:15","date_gmt":"2023-07-31T19:49:15","guid":{"rendered":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/economics-101\/understanding-interest-rates\/"},"modified":"2025-07-31T09:52:22","modified_gmt":"2025-07-31T13:52:22","slug":"understanding-interest-rates","status":"publish","type":"rbc_my_money_matter","link":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/economics-101\/understanding-interest-rates\/","title":{"rendered":"Understanding Interest Rates"},"content":{"rendered":"\n<section class=\"wp-block-rbc-section-block  pos-rel pad-b-0 pad-t-0\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner pad-t-0 pad-b-0\" style=\"border-radius:0x\">\n<div class=\"wp-block-group is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-6ba379fd wp-block-group-is-layout-constrained\">\n<p class=\"h3\">Learn how interest rates impact your savings and borrowing. What causes them to rise and fall and find how their movements affect your money.<\/p>\n<\/div>\n<\/div>\n<\/section>\n\n\n\t\n\t<div class=\"wp-block-tk-spacer id-3510fb4f-7ac4-4b3e-8b1e-1f096ff5d693\" aria-hidden=\"true\"><\/div>\n\t\n\n\n<section class=\"wp-block-rbc-section-block  pos-rel pad-t-0 pad-b-0\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner pad-t-0 pad-b-0\" style=\"border-radius:0x\">\n<div class=\"wp-block-columns  mar-b-0 is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column mar-r mob-mar-r-0 mob-mar-b-dbl is-layout-flow wp-block-column-is-layout-flow\">\n<article id=\"post-94413\" class=\"loop-post featured-vertical mob-pad-b-dbl post-94413 rbc_my_money_matter type-rbc_my_money_matter status-publish has-post-thumbnail hentry tag-finding-home tag-home-ownership rbc_content_type-article rbc_lob_group-mortgage rbc_difficulty_level-beginner rbc_mmm_category-buying-a-home rbc_mmm_category-buying-your-first-home rbc_mmm_category-buying-your-next-home rbc_mmm_category-economics-101 rbc_mmm_category-goals-aspirations rbc_mmm_category-investment-property-and-vacation-home rbc_mmm_category-money-academy rbc_mmm_category-refinancing-and-downsizing rbc_mmm_category-understanding-interest-rates\">\n\t<div class=\"col-wpr mar-b-0\">\n\t\t\t\t\t<div class=\"col-md-12 mar-b mob-mar-b-dbl\">\n\t\t\t\t<div \n\t\t\t\t\trole=\"img\"\n\t\t\t\t\taria-label=\"A hand holds a disc with a percentage symbol on it, and upward and downward arrows over and below the disc to reflect the rate announcement on September 17, 2025.\"\n\t\t\t\t\tclass=\"post-card-image\"\n\t\t\t\t>\n\t\t\t\t\t\t\t<img\n\t\t\tdecoding=\"async\"\n\t\t\tloading=\"lazy\"\n\t\t\twidth=\"680\"\n\t\t\theight=\"453\"\n\t\t\tsrc=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2025\/07\/Sep-15_shutterstock_2438592943.jpg?quality=80&#038;w=680\"\n\t\t\talt=\"A hand holds a disc with a percentage symbol on it, and upward and downward arrows over and below the disc to reflect the rate announcement on September 17, 2025.\"\n\t\t\tclass=\"wp-post-image\"\n\t\t\t\t\t\tstyle=\"object-position: 50% 50%; \"\n\t\t\t\t\t\/>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t<div class=\"col-md-12 mob-mar-t-0\">\n\t\t\t\t\t\t\t<div class=\"inline-block pill-container pill-taxonomies\">\n\t\t\t\t\t<div class=\"mar-b-hlf mob-mar-b snipe pill is-style-blue-pill\">\n\t\t\t\t\t\t<a class=\"primary-taxonomy\" href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/topic\/home-ownership\/\">\n\t\t\t\t\t\t\t<span>Home Ownership<\/span>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/economics-101\/understanding-interest-rates\/bank-of-canada-interest-rate-announcement\/\" class=\"h3 loop-post-title mar-t-0\">Bank of Canada Interest Rate Explained and How It Shapes Your Mortgage<\/a>\n\t\t\t\t\t\t\t<p>Latest update: The Bank of Canada holds its interest rate at 2.25%. <\/p>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/article>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-rbc-rbccom-latest-posts\">\n<article id=\"post-90289\" class=\"single-post-card-wrapper post-90289 rbc_my_money_matter type-rbc_my_money_matter status-publish has-post-thumbnail hentry tag-finding-home tag-home-ownership rbc_content_type-article rbc_lob_group-mortgage rbc_difficulty_level-beginner rbc_mmm_category-buying-a-home rbc_mmm_category-buying-your-first-home rbc_mmm_category-economics-101 rbc_mmm_category-goals-aspirations rbc_mmm_category-inspired-investor rbc_mmm_category-smart-saving rbc_mmm_category-understanding-interest-rates\">\n  <div class=\"wp-block-rbc-single-post-card\">\n    <div class=\"latest-post-card\">\n      \t\t\t\t<div class=\"inline-block pill-container pill-taxonomies\">\n\t\t\t\t\t<div class=\"mar-b-hlf mob-mar-b snipe pill is-style-blue-pill\">\n\t\t\t\t\t\t<a class=\"primary-taxonomy\" href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/topic\/finding-home\/\">\n\t\t\t\t\t\t\t<span>Finding Home<\/span>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t              <a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/economics-101\/understanding-interest-rates\/understanding-the-bank-of-canadas-monetary-policy-report-what-it-means-for-everyday-canadians\/\" class=\"h4 post-title mar-b-hlf mar-t-0 truncate-third-line\">Understanding the Bank of Canada&#8217;s Monetary Policy Report: What It Means for Everyday Canadians<\/a>\n                    <p class=\"post-description\">The Bank of Canada\u2019s (BoC) latest Monetary Policy Report provides a comprehensive look at how its monetary policy is shaping critical aspects of the&#8230;<\/p>\n          <\/div>\n  <\/div>\n<\/article>\n\n\n\n<article id=\"post-95172\" class=\"single-post-card-wrapper post-95172 rbc_my_money_matter type-rbc_my_money_matter status-publish has-post-thumbnail hentry tag-budgeting tag-managing-money tag-personal-finance rbc_content_type-article rbc_lob_group-mortgage rbc_difficulty_level-beginner rbc_mmm_category-buying-a-home rbc_mmm_category-buying-your-first-home rbc_mmm_category-buying-your-next-home rbc_mmm_category-economics-101 rbc_mmm_category-goals-aspirations rbc_mmm_category-money-academy rbc_mmm_category-understanding-interest-rates\">\n  <div class=\"wp-block-rbc-single-post-card\">\n    <div class=\"latest-post-card\">\n      \t\t\t\t<div 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href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/goals-aspirations\/buying-a-home\/buying-your-first-home\/4-questions-millennials-should-answer-before-buying-a-home\/\" class=\"h4 post-title mar-b-hlf mar-t-0 truncate-third-line\">Four Questions Everyone Should Ask Before Buying a Home<\/a>\n                    <p class=\"post-description\">Whatever your motivation is for buying a home, here are four questions to see if you are financially ready<\/p>\n          <\/div>\n  <\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n\n\n\n<section class=\"wp-block-rbc-section-block  pos-rel pad-b-0 pad-t-0\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner pad-t-0 pad-b-0\" style=\"border-radius:0x\">\t\n\t<div class=\"wp-block-tk-spacer id-f1a1ca7c-6363-4c09-9dde-46a01bc15cc8\" aria-hidden=\"true\"><\/div>\n\t\n\n\n<h2 class=\"wp-block-heading pad-b mob-pad-b\" id=\"more-from-understanding-interest-rates\">More From 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href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/topic\/budgeting\/\">\n\t\t\t\t\t\t\t<span>Budgeting<\/span>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/goals-aspirations\/buying-a-home\/buying-your-next-home\/mortgage-renewal-why-locking-in-early-could-be-right-for-you\/\" class=\"h4 card-title loop-post-title mar-b-hlf mar-t-0 mar-b-0\">Mortgage Renewal: Why Locking in Early Could be Right for You<\/a>\n\t\t\t\t\t\t\t\t\t<p class=\"mar-t-hlf\">Learn the benefits of early mortgage renewal, especially in an uncertain economy.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t<\/article><!-- #post-95172 -->\n\t\t\t\t\t<div class=\"load-more-button text-center mob-pad-t-hlf pad-t\">\n\t\t\t\t\t\t<button class=\"btn tertiary mar-t-0\">View More Articles<\/button>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t<\/div>\n\n\t\t<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow 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