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Katie Dack and Aleksandar VasilevUniversity of Lincoln, UKPart of the book: Advances in Business and Management. Volume 20Chapter DOI: https://doi.org/10.52305/NJVS2286AbstractThe aim of this study is to model the effects of interest rates on consumption within the UK economy to allow for a clearer understanding of the relationship between these two variables at hand and how this relates to the current economic literature. This paper also explores the causal effects of other independent variables on consumption and whether they have a significant impact or not. This topic is addressed by using a range of economic models, using Stata and EViews, to explore the full relationship of the variables at hand and how they impact consumption. This paper provides an understanding of the timing and the effectiveness of changes in the interest rate that influences consumption. 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