What does an interest rate increase of 25 basis points mean?

What does an interest rate increase of 25 basis points mean?

25 basis points = 0.25%.

When the US Federal Reserve raises interest rates, the Gulf countries such as Saudi Arabia, the United Arab Emirates, Qatar, Bahrain and Oman also raise interest rates.

In a simpler sense:

Loans are getting more expensive

The cost of the loan increases

Loans and expenses may decrease

The savings become more attractive

The main goal is to help curb inflation and rising prices.