End of an Era: Bank of England to Hike Interest Rate?
October 11, 2017
The Bank of England is poised to raise interest rates for the first time in over a decade.
The last rate increase came in May of 2007, when the Bank hiked from 5.5% to 5.75%. The current rate sits at just 0.25%, and it has hovered in the sub-1% range since March 2009.
The timing of the hike is anything but ideal. This is not a hike that’s meant to pump the brakes on an economy hurdling toward full employment; rather, it’s a reaction to the pound sterling’s plunge since the referendum in 2016. And with the giant question mark of Brexit looming, confidence is already rattled regarding the United Kingdom’s short-term economic outlook.