UK interest rates today: Are interest rates going up? Will the interest rate rise?
THE BANK of England has decided to increase interest rates for the first time in a decade. Here is waht you need to know.
Mark Carney: Expect interest rates to rise in near future
The Monetary Policy Committee (MPC) to increase interest rates from the record low of 0.25 per cent to 0.5 per cent.
This reverses the last interest rate cut 18 months ago. There has not been an increase in interest rates since July 2007.
Laith Khalaf, senior analyst at Hargreaves Lansdown, said the rise in interest rates "marks the start of a new era in monetary policy" but there is unlikely to be much disruption in financial markets.
He said: “It’s been over ten years since the last interest rate rise, so investors will have to dig deep in their memory banks to remember what one looks like."
Martin Lewis, founder of MoneySavingExpert.com, said: “Low interest rates have been a plague for many with savings, especially those who retired and expected to live off the interest.
“So rate rises are generally good news for them – indeed we’ve already seen rates crawl up in expectation.
“The top easy access deal is now 1.3%, compared to just 1% a few months ago.
“This means I doubt we’ll see the top best-buys rise by the full 0.25% over the next few weeks. With a little bit of crystal ball gazing I’d say we’ll see them max out at 1.4% to 1.5%.”
In September, the MPC said that a "majority" of members believed that some withdrawal of stimulus would be appropriate if the economy continued on the same path.
Bank of England Governor Mark Carney also warned that interest rates are set to rise in the “relatively near term”.
Mr Carney suggested that there could be a rate rise as early as November 2 by saying that it was time for the bank to "ease its foot off the accelerator".