The Bank Of Englend Raised Interest Rates To 10℅
For the first time in more than 10 years The Bank Of England raised interest rates.
Bank of England policy makers raised interest rates for the first time in a decade, yet showed concern for Britain’s Brexit-dented economy by indicating that another increase isn’t imminent.
The BOE lifted its policy rate to 0.5%, from 0.25% previously, and signaled that further tightening would be gradual and limited, indicating just two more quarter-point increases by the end of 2020.
Official borrowing costs are now back to where they were between early 2009 and August 2016, when there was an emergency cut in rates following the Brexivote.
The economy is growing a little faster than the Bank previously expected. It has raised its forecast for 2017 from 1.3pc in August to 1.5pc now. GDP growth is set to rise to 1.7pc in 2018 - marginally weaker than previously hoped - and stay there into 2019 and 2020.
The recession the Bank feared did not materialise and so – with inflation above its 2% target and the unemployment rate at its lowest in more than four decades – there has been a modest tightening of policy.
After a meeting at the U.S. central bank this week, officials signaled they remain on track to hike for a third time this year in December.
