MPC decision on interest rates tomorrow (General sub-thread) MPC decision on interest rates tomorrow (General sub-thread) - Page 2
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  1. #11

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    jamesbrown is a fount of knowledge

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    Bank rate up to 0.5%. Not surprising.

  2. #12

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    Taken from Professional Adviser

    The Bank of England's Monetary Policy Committee (MPC) has hiked interest rates from 0.25% to 0.5%, the first interest rate rise since July 2007.

    The Bank of England showed seven members of the committee voted for a rise while just two members voted for rates to remain at 0.25%.

    At the last meeting in September, only Ian McCafferty and Michael Saunders had voted for a rise.

    The hike today is a reversal of the rate cut Bank of England governor Mark Carney implemented last year in the wake of the Brexit vote, which rocked markets and caused sterling to plummet.

    This is the first time rates have been raised since July 2007, when they were raised by 0.25% from 5.5% to 5.75%.

    However, as the global financial crisis began to unfold the BoE, then led by Mervyn King, rates began moving downwards and on 8 October 2008 central banks around the world cut rates in a coordinated move as the crisis peaked.

    Since March 2009, rates have been at or under 0.5%.

    Today's move had been widely predicted by the market and economists following more hawkish comments by governor Mark Carney in recent months as he hinted at hikes 'in the coming months'.

    CPI inflation rose to 3% in September and the UK economy grew by 0.4% in Q3, giving further reason for economists to increase the likelihood of a rate rise to 84%.

    However, speaking to the Treasury Select Committee in October, Carney ruled out raising rates for the sake of it in order to be able to reduce them if there was another recession.

    "Building a war chest in interest rate terms for a potential future shock, is not staying on point in terms of the inflation target, nor is it appropriate or necessary given that policy can move quite nimbly if required," he said.

    The next meeting will be held on 13 December.

  3. #13

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    sasguru - scorchio!


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    Quite shocking to note this is the first rise in almost a decade.
    There are people, many who have large mortgages, who have never budgeted for an interest rate rise
    This should reduce consumer spending even more.
    Hard Brexit now!
    #prayfornodeal

  4. #14

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    Quote Originally Posted by Martin@AS Financial View Post
    Taken from Professional Adviser

    CPI inflation rose to 3% in September and the UK economy grew by 0.4% in Q3, giving further reason for economists to increase the likelihood of a rate rise to 84%.
    .
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  5. #15

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    SunnyInHades has more data than eek


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    Interesting that upon today's rise announcement:
    ftse100 has risen
    the pound has fallen

    probably due to 'Sell the fact' trading (traders buying on rumor of a rise then selling on the event).

  6. #16

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    Nobody applauded after they finished their meeting.
    I'm alright Jack

  7. #17

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    Bank of England issues fresh warning about Brexit's impact on UK economy | The Independent

    The Bank of England has issued a fresh set of warnings about the implications of Brexit, reiterating that the UK’s split from the European Union would likely hamper productivity and slow growth.

    In its regular inflation report, published after announcing its first interest rate rise in over a decade, the central Bank struck a cautious tone and said that any future increases in rates would largely depend on the nature of Brexit.

    “The decision to leave the European Union is having a noticeable impact on the economic outlook,” it said.
    Brexiteers remind me of religious fanatics, only faith, no facts.

  8. #18

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    A "hike" implies a sharp increase. Is it me or is 0.25% not really a "hike" but more of an uplift?

  9. #19

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    Quote Originally Posted by sasguru View Post
    Quite shocking to note this is the first rise in almost a decade.
    There are people, many who have large mortgages, who have never budgeted for an interest rate rise
    This should reduce consumer spending even more.
    Must be great news for you. A million £ house with no mortgage and another £1M in the bank from the sale of your BTL empire. And now more interest to the wealthy. Hope you are celebrating the extra income...
    Three-and-a-half years, two extensions, seven defections, 21 deselections, three prime ministers, countless amendments, two prorogations, one Supreme Court judgement, 66 million Brits losing the will to live and were still at square one...

  10. #20

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    Quote Originally Posted by DimPrawn View Post
    Must be great news for you. A million £ house with no mortgage and another £1M in the bank from the sale of your BTL empire. And now more interest to the wealthy. Hope you are celebrating the extra income...
    Is sas only a millionaire? I thought he was rich.


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