Interest rate rise — Bank of England increased rates to 0.5% today
Bank chief Note Carney confirmed earlier speculation by revealing the rate would arise from 0.25 per cent to 0.5 per cent.
Concerns were dredge up by charities and business groups prior to the Bank’s announcement.
They groaned already stretched firms and households would be put under further vexation by a rates increase.
However, the rise is good news for Britain’s savers.
Those with changeable rate mortgages will also be hit by the hike. Around one in 10 households are currently purchasing the mortgage type.
Policymakers on the bank’s nine-strong Monetary Policy Commission (MPC) voted 7-2 in favour of the quarter point rise, which marks the principal rates increase since July 2007.
The move comes as the bank looks to abate Brexit-fuelled inflation, which it predicts will now peak at around 3.2 per cent this autumn.
The Bank’s four times a year inflation report also suggested two more rate hikes were favourite over the next three years to return inflation back to its two per cent quarry, which could see rates hit one per cent by the end of 2020.
More to follow…