Interest rates rise to 0.75% as expected
A unanimous decision, the 0.25% rise to 0.75% could only have been surprising if it hadn’t been announced. The mood music points to a gradual climb over a number of years to a new average of between 2% and 3%, but don’t bet on any further increases this year, as everybody watches the Brexit negotiations. Indeed, some commentators point to today’s move as a way of building some wiggle-room into the base rate, to allow the Bank some flexibility over the coming 12 months. Some commentary here, here and here.