Knuckle Down For Interest Rates Rise.
It’s time to knuckle down. Next Thursday, the Bank of England Monetary Policy Committee will meet to make a decision on whether to increase interest rates.
The argument to not increase has always been the economy is not strong enough. We do have some sympathy with this given Brexit uncertainty.
That said, inflation is now at 3% (the Bank of England said this was the point they would look to curb inflation and strengthen the pound with higher rates. A stronger pounds means imports become cheaper meaning the cost of living goes down.
Added to this, GDP in the UK was higher than expected at 0.4%, meaning economic output is up.
Many commentators are expecting a rate rise on 2nd November.
Impact of rate rises
We suggest we are now getting close to big economic and market drivers. Time to knuckle down, clear as much debt as you can and tighten belts.