Interest rate hikes can have a significant impact on consumers. When central banks raise interest rates, borrowing becomes more expensive. This affects consumers in several ways:

1. Mortgages and Loans: Higher interest rates lead to increased monthly payments for variable-rate mortgages and loans. For example, a 1% increase in the interest rate on a $200,000 mortgage could lead to an additional $120 in monthly payments.

2. Credit Cards: Many credit cards have variable interest rates tied to the prime rate. As a result, consumers may see an increase in the interest charges on their outstanding balances, leading to higher overall costs.

3. Savings Accounts: While higher interest rates mean better returns on savings, the impact may not be immediate. Banks are often slow to raise the interest rates they offer on savings accounts, so consumers may not see the benefits right away.

4. Consumer Spending: As borrowing becomes more expensive, consumers may cut back on discretionary spending, which can have a broader impact on the economy.

5. Investments: Higher interest rates can lead to increased yields on fixed-income investments, but they may also lead to lower stock prices as borrowing costs rise for companies.

It's important to note that the impact of interest rate hikes on consumers can vary based on individual circumstances and the overall economic environment.

References:

• Federal Reserve Economic Data (FRED) - https://fred.stlouisfed.org/
• Consumer Financial Protection Bureau - https://www.consumerfinance.gov/