Bank of England raises interest rates to 0.5% from 0.25%

• The move comes to offset the rising inflation in the local markets
• Monetary Policy Committee (MPC) of Bank of England (BoE) last raised policy rates in July, 2007

Under the Governorship of Mark Carney, Bank of England’s Monetary Policy Committee voted 7 – 2 in favor of raising the benchmark rate to 0.5 percent from 0.25 percent. The Committee in the statement voiced concerns for the British economy as it separates from European Union in 2019.

The announcement was made in a press conference.

The press briefing was clouded with the rising worries overchanging economic and financial landscape of Britain’s economy in the face of Brexit talks.

With raise being touted as a good news for savers in the country, experts were of differing opinion some saying the hike is a mistake whereas others hinted at the rising inflation and the effects of the said inflation on the consumers.

The rate hike is for the first time in decades since the 2007 meltdown.

Furthermore, Mark Carney of BoE also avoided any statements regarding raises in near future.