The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 1 August 2018, the MPC voted unanimously to increase Bank Rate by 0.25 percentage points, to 0.75%. The Committee voted unanimously to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £10 billion. The Committee also voted unanimously to maintain the stock of UK government bond purchases, financed by the issuance of central bank reserves, ... (full story)

The Bank of England has announced a rate hike despite ongoing uncertainty over the future of the U.K. economy. The Monetary Policy Committed voted for an increase in rates from 0.5 to 0.75 percent on the back of a strong labor market and credit growth. Although Thursday's decision follows market expectations, analysts believe the central bank will proceed gradually with monetary policy tightening. The change in interest rate will bring higher costs for those borrowing money, including mortgages. On the other hand, it will benefit savers. The BOE moved the interest rate from 0.25 percent to the current level of 0.5 ... (full story)