Carney warns that Interest rates may need to be increased regularly

By Lauren Burns

The Monetary Policy Committee (MPC) of the Bank of England has voted unanimously to keep interest rates at 0.75 per cent.

Interest rates were increased to 0.75 per cent from 0.5 per cent on 2nd August 2018 but none of the 9 MPC members have since voted for an increase. The news will be particularly well received by mortgage borrowers and first time buyers who are anxious to see if they might be looking at increased monthly mortgage payments as a result of a vote for an interest rate rise.

There was however a warning from Bank of England governor Mark Carney that there may be "more frequent" interest rates than expected. A change was unlikely during the current uncertainty over the timing and the nature of Brexit, and at the moment only one interest rate increase is expected by 2021. However, Mr Carney says that a resolution to the Brexit impasse resulting in improved growth and a rise in inflation would make it necessary to increase the interest rate more regularly "than the market currently expects".

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