For the first time in a decade, the Bank of England has increased the official bank interest rate.
If one was being alarmist, one could say that it has doubled - from 0.25% to 0.50%. Being less alarmist, it has returned to where it was from 2007 until immediately after the Brexit referendum result (when it was lowered to help stave off a recession).
The increase in interest rate is to combat the inflationary pressures in the UK economy (caused in part by the post-Brexit slump in the value of sterling) which it should in two ways. It will decrease the amount of money sloshing around the economy and it should also bolster the value of sterling and thus make imported goods cheaper (though sterling is currently lower today because speculators were also hoping for clear indications of future rate rises).
http://ift.tt/2inrVJu
As the graphs in the BBC story above show, interest rates are still at historically very low values when compared to the last 40 years or so.
Unfortunately the increase in interest rates may further constrain UK growth (currently lagging behind the EU average) but I guess you can't have everything.
If one was being alarmist, one could say that it has doubled - from 0.25% to 0.50%. Being less alarmist, it has returned to where it was from 2007 until immediately after the Brexit referendum result (when it was lowered to help stave off a recession).
The increase in interest rate is to combat the inflationary pressures in the UK economy (caused in part by the post-Brexit slump in the value of sterling) which it should in two ways. It will decrease the amount of money sloshing around the economy and it should also bolster the value of sterling and thus make imported goods cheaper (though sterling is currently lower today because speculators were also hoping for clear indications of future rate rises).
http://ift.tt/2inrVJu
As the graphs in the BBC story above show, interest rates are still at historically very low values when compared to the last 40 years or so.
Unfortunately the increase in interest rates may further constrain UK growth (currently lagging behind the EU average) but I guess you can't have everything.
via International Skeptics Forum http://ift.tt/2gY05TE
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