Bank of England raises Bank Rate to 0.5%

At noon the Bank of England Monetary Policy Committee (MPC) raised the Bank Rate in the first time in a decade by 0.25% to 0.5%.
Whilst this is good news for savers, in reality the increase merely puts us back in the same place as last year before a cut in rate was made from 0.5% to 0.25% in reaction to the decision to leave the European Union.

The last time the MPC raised rates was 5 July 2007 and at that time the Bank Rate was increased from 5.5% to 5.75%. We may have a while to wait before we get back to those sort of interest rate levels as the Bank has been keen to stress, to balance the interests of borrowers as well as savers, that any further increases will be gradual.

The Bank Rate at 0.5% remains low and although we have seen banks and building societies deposit rates edge up in the last month they are still far lower than we have seen in the past.

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