Interest Rates to stay at 0.5%

The UK’s interest rates are to stay at 0.5% the Bank of England has revealed.

The all members of the Monetary Policy Committee (MPC) voted to keep the rates at the same level.

It also said that the rates could rise over the next few years.

The move should mean that High Street Banks will raise their interest rates, meaning savers will benefit.

The Bank says the main reason behind rising inflation has been the fall in value of the pound, which in June, fell last year after the UK voted to leave the European Union.

The pound is still lower than the dollar and euro, which affects the price of food, raw materials and imported goods, despite a recovery in recent months.

The pound was given a boost last week when the European Union agreed that sufficient progress had been made in Brexit negotiations to allow them to progress to the next stage and to put a transition period in place.

 

 

After Theresa May secured a deal in Brussels last week so that Brexit negotiations could progress to trade, the pound was bolstered, meaning importing goods was cheaper.

The developments “would reduce the likelihood of a disorderly exit, and was likely to support household and corporate confidence”, said the BoE.

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