Bank Rate at 5%
The Bank of England hikes to fight inflation. Who actually feels it first?
CalibratedNumbers calibrated against a published source.The verdict
Banks pay 45p of every £1 of pressure. Households gain 24p.
45pof every £1 of pressure lands on Banks
Where the pressure moves
The £1 pressure trail
Green trails = cash / relief received. Red trails = pressure absorbed. Every £1 has to land somewhere.Every £1 of pressure · rebased to 100p
How to read this — three tiers
Ledger— Real cash, deposits or reserves move between actors. Conservation-checked.
Valuation— Existing assets are marked up or down. No cash changes hands, but balance sheets move.
Indicator— A directional pressure gauge only. Not a cash movement and not a balance-sheet entry.
Who gains
- Households+24p
- Government+15p
- Businesses+13p
Who pays
- Banks−45p
- Pensions & insurers−3p
What it means for one person
Dan and Sarah
young family, two-year fix ending
Their remortgage costs an extra £4,100 a year. Meanwhile, the same rate rise pays cash-rich savers and rewards banks' net-interest margins.
The context
Raising Bank Rate is the headline lever. It moves mortgage payments, savings returns, and government debt-service costs — but not equally, and not for the same people.
Explore further
Change a lever. See how the trail moves.
Sources
More scenarios