Bank of England set to raise interest rates to the highest level for a decade

worldtraveller

The Bank of England is this week poised to raise interest rates for only the second time since the financial crisis, taking borrowing costs to their highest level in almost a decade.

Amid solid economic data and recent hints from policymakers, market expectations of a quarter-point rise have increased to about 90%, meaning the pound is likely to tumble if the Banks monetary policy committee (MPC) holds steady on Thursday.

The expected rise to 0.75% would mark the highest level for Bank rate since it was cut to 0.5% in March 2009.

The Sunday Times

Jack_Johnson_the_acorn

worldtraveller wrote: »

The Bank of England is this week poised to raise interest rates for only the second time since the financial crisis, taking borrowing costs to their highest level in almost a decade.

Amid solid economic data and recent hints from policymakers, market expectations of a quarter-point rise have increased to about 90%, meaning the pound is likely to tumble if the Banks monetary policy committee (MPC) holds steady on Thursday.

The expected rise to 0.75% would mark the highest level for Bank rate since it was cut to 0.5% in March 2009.

The Sunday Times

What effect will it have on interest rates for mortgages, that's what matters. They still seem to be offering incredibly cheap rates for short and long term fixes.

westernpromise

Jack_Johnson_the_acorn wrote: »

What effect will it have on interest rates for mortgages, that's what matters. They still seem to be offering incredibly cheap rates for short and long term fixes.

Probably none.

sparkey1

I wouldn't worry about this. Inflation has stayed at 2.4 per cent for the last three announcements. The pound is fairly close to its pre Brexit rate against the dollar, so with Brexit on the horizon the bank of England is unlikely to raise the rates as that will lead to an even higher pound, making exports more expensive.