Featured

UK Interest Rates Increase Gains Following

UK Interest Rates Increase Gains Following

Since March 2009, the Bank of England (BoE) has been quite clear that they are not planning on increasing interest rates any time soon.

But things look like they might be changing.

UK Interest Rates Increase Gains Following

The interest rates in the United Kingdom have remained the same since 2009 but a recent meeting at the Bank of England shows that rates might be increased soon.

In a recent meeting which took place on the 6th and 7th of August, two members of BoE’s Monetary Policy Committee (MPC) voted to raise interest rates in August.

Martin Weale and Ian McCafferty voted for an increase of 0.25% to 0.75%.

Both members suggested that increasing the interest rate earlier could help curb inflationary pressures from wage rises.

This was the first time in three years, since July 2011, that policy makers have voted for an increase.

While the MCP has nine members and requires a majority to change interest rates, the latest 7-2 vote means that these rates will continue at a low of 0.5%.

As a result of this latest vote, the British pound (GBP) immediately advanced 0.20% against the U.S. dollar (USD) to trade at $1.66.
These bank minutes were also released after the quarterly inflation data was revealed and according to the Office for National Statistics (ONS), the average wages, excluding bonuses, increased by only 0.6% in the year to June.

This marked the slowest pace of growth since 2001.

If interest rates are increased now, this will have an impact on those with mortgages, debts and savings accounts and will also impact the profitability of companies as well as the rate of economic growth.

The value of the GBP will also strengthen together with the value of share prices.

Despite the recent vote for a change in the interest rates, Mark Carney, the Bank Governor, has stated that any rise will be gradual and is not likely to occur before the General Election in May 2015.

Featured

Raised close to London’s financial district, Ben has always found the world of business and money fascinating. While completing a degree in business studies Ben started writing for his university newspaper and hasn’t stopped since. Over the last decade Ben has gathered a wealth of experience writing about business and the financial markets and he is pleased to be able to share it with you here.

More in Featured

Big Time Journey Slot Collects Winnings Throughout Time

Big Time Journey Slot Collects Winnings Throughout Time

Rachel PhilipsAugust 25, 2015
£2.1M National Lottery Results for Wednesday August 12

£2.1M National Lottery Results for Wednesday August 12

Gemma MarksAugust 25, 2015
Woman Wins £51K Lottery Payout Using Ex-Partner’s Numbers

Woman Wins £51K Lottery Payout Using Ex-Partner’s Numbers

Gemma MarksAugust 24, 2015
Great Britain Advises Against Travelling to Tunisia

Great Britain Advises Against Travelling to Tunisia

Gemma MarksAugust 1, 2015
British Energy Companies To Slash Consumer Rates

British Energy Companies To Slash Consumer Rates

Ben ThomasJanuary 13, 2015
Gambling Act Enforcement Delayed by a Month

Gambling Act Enforcement Delayed by a Month

Gemma MarksOctober 1, 2014
Ladbrokes Adverts Banned Based on Irresponsible Attitudes

Ladbrokes Adverts Banned Based on Irresponsible Attitudes

Ben ThomasSeptember 18, 2014
32Red To Migrate Go Wild Casino Customers Following Database Purchase

32Red To Migrate Go Wild Casino Customers Following Database Purchase

Ben ThomasSeptember 11, 2014
London Casinos Receive New Security Systems From Eyevis UK

London Casinos Receive New Security Systems From Eyevis UK

Rachel PhilipsSeptember 5, 2014