Bank of England hikes interest rates to 0.75 per cent

The Bank of England hiked interest rates Thursday by a quarter-point to 0.75 per cent to help tame high inflation, and upgraded its 2019 economic growth forecast despite Brexit fears, reports AFP from London.

The British central bank's nine-member monetary policy committee voted unanimously to raise rates for only the second time since the global financial crisis, but left unchanged its quantitative easing stimulus.

"A 0.25 percentage-point increase in bank rate was warranted at this meeting to return inflation sustainably to the target," the BoE said in minutes from the meeting.

Borrowing costs have now risen above the symbolic barrier of 0.50 per cent for the first time since March 2009, having already been hiked last November to combat Brexit-driven inflationary pressures. The 12-month inflation rate has held stubbornly above the BoE's official 2.0-per cent for the last 17 months, as Brexit weighted on the pound and pushed up the cost of imported goods. The pound edged higher in response to Thursday's news, which was in line with market expectations, while London's benchmark FTSE 100 shares index stayed put at around 1.20 per cent lower.

 

Bank of England hikes interest rates to 0.75 per cent

The Bank of England hiked interest rates Thursday by a quarter-point to 0.75 per cent to help tame high inflation, and upgraded its 2019 economic growth forecast despite Brexit fears, reports AFP from London. The British central banks nine-member monetary policy committee voted unanimously to raise rates for only the second time since the global financial crisis, but left unchanged its quantitative easing stimulus. A 0.25 percentage-point increase in bank rate was warranted at this meeting to return inflation sustainably to the target, the BoE said in minutes from the meeting. Borrowing costs have now risen above the symbolic barrier of 0.50 per cent for the first time since March 2009, having already been hiked last November to combat Brexit-driven inflationary pressures. The 12-month inflation rate has held stubbornly above the BoEs official 2.0-per cent for the last 17 months, as Brexit weighted on the pound and pushed up the cost of imported goods. The pound edged higher in response to Thursdays news, which was in line with market expectations, while Londons benchmark FTSE 100 shares index stayed put at around 1.20 per cent lower.