Bank of England Warns of Interest Rate Rises

Published / Last Updated on 10/06/2019

Interest rates could rise a number of times over the next couple of years, the Bank of England (BoE) has warned.

Ben Broadbent, Deputy Governor (BoE) commented that “Early May the banks health check did show it could benefit a raise in interest rates and the monetary policy committee that sets the interest rate would be meeting next week.

Andy Haldane the bank’s chief economist said, “the time is coming to raise interest rates which could possibly stop inflation pressure.”  Former city analyst Michael Saunders said “We are not delaying a rise in interest rates due to the doubts around Brexit”.

Financial market investors have disagreed with the Bank’s suggestion, but Brexit uncertainty could change their decision depending if Britain suddenly departs from the EU.

Comment

Until Brexit is a known outcome, you can never say “Yeh or Neh”.  The reality is that global inflation is on the rise.  Prices are going up and we believe most central banks wanted inflation to devalue global debt without ever repaying it but at some point, the brakes will be applied to inflation with interest rate rises.

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