Bank of England raises interest rate and can be expected to rise gradually, news reported in media

The Bank of England reportedly raises interest rate today after decade and it is reported that the rate has risen by a quarter of a percentage point, from 0.5 to 75% – the highest level since March 2009, said media news report.

According to media news report, rates can be expected to rise gradually. Policy needs to walk, not run, to standstill, reportedly said Governor of the Bank of England, Mark Carney.

Reportedly commenting on Brexit, Mr Carney said the Monetary Policy Committee recognise that the economic outlook could be influenced significantly by the response of households, businesses and financial markets to developments related to the process of EU withdrawal.

According to news report, the Bank is sticking to its guidance that interest rates will continue to head higher, but only at gradual pace and to a limited extent, said media news report.

-AENNS -02/08/2018