POUND LIVE: Pound drops against both euro and dollar following the Bank of Engalnd's vote
THE Pound-to-euro exchange rate lies at 1.1271 down 1.16 per cent. The dollar exchange rate has been recorded at 1.3132 a decrease of 0.92 per cent.
This announcement is in direct contrast to the decision made in August of last year, which was made following the Brexit vote.Seven members of the Monetary Policy Committee (MPC) including Mark Carney voted for the 0.25 per cent rise in interest rates to 0.5 per cent.
This decision was widely anticipated and was far from a surprise for a lot of people.
The Bank of England (BoE) have predicted that by 2019 interest rates will have risen to 1 per cent, at this point inflation will most likely be reasonably under control.
The financial market is estimating two more interest rate increases over the next three years.
Still, the MPC have highlighted that “future increases in the bank rate would be expected to be at a gradual pace and to a limited extent”.
The two members of the MPC who voted against the rise, deputy governors Dave Ramsden and Jon Cunliffe argued “there was insufficient evidence so far that domestic costs, in particular wage growth, would pick up in line with the . . . central projection”.
This decision was widely anticipated and was far from a surprise for a lot of people.
The Bank of England (BoE) have predicted that by 2019 interest rates will have risen to 1 per cent, at this point inflation will most likely be reasonably under control.
The financial market is estimating two more interest rate increases over the next three years.
Still, the MPC have highlighted that “future increases in the bank rate would be expected to be at a gradual pace and to a limited extent”.
The two members of the MPC who voted against the rise, deputy governors Dave Ramsden and Jon Cunliffe argued “there was insufficient evidence so far that domestic costs, in particular wage growth, would pick up in line with the . . . central projection”.
The BoE believes this rise will have a small effect on the majority of British households as they have fixed rate mortgages meaning the by-products of this increase will take time to have an effect for some time.
The main losers brought about by this decision will be households with a variable rate mortgage.
Still, pensioners contemplating whether or not to buy an annuity will see better deals.
The main losers brought about by this decision will be households with a variable rate mortgage.
Still, pensioners contemplating whether or not to buy an annuity will see better deals.