So, the Bank of England’s Monetary Policy Committee (MPC) has made the unanimous (all its members came to the same decision) to raise the Bank Base Rate by 0.25 percentage points, to 0.75%.
The Inflation Report states ‘Global developments will affect the UK through their impact on external demand… The tightening in global financial conditions has pushed up the cost of finance in the UK modestly…’
‘In the mortgage market, lower bank funding costs and intensifying competition have led to a reduction in mortgage rates in recent years. Some households will have benefited from those low rates… Bank funding costs have risen more recently… and are starting to be passed through to higher mortgage rates’
Why has the Bank of England raised Interest Rates? Basically, they say its inflation (which is like blaming it on the weather).
It still seems to me that it’s the same very mixed picture… Oh! And Brexit is coming…
