Bank of England raises Bank Rate to 0.75%

Industry News | 02/08/18

In a widely expected move, the Bank of England’s Monetary Policy Committee has voted unanimously to increase Bank Rate to 0.75%.

Interest rates are now at their highest level since February 2009 when they were cut from 1% to 0.5%.

The Bank cut the base rate to 0.25% in August 2016 before raising it back to 0.5% in November 2017.

In its meeting, the MPC agreed that the first quarter was temporary, with momentum recovering in the second quarter.

The Bank of England expects GDP to grow by around 1.75% per year on average which, “although modest by historical standards”, is slightly faster than the diminished rate of supply growth, which averages around 1.5% per year.
Source: financial reporter