UK hikes interest rates for second time in a decade

The United Kingdom got only its second interest rate hike in over a decade on Thursday. Brexit will decide w...

Posted: Aug 2, 2018 3:25 PM
Updated: Aug 2, 2018 3:25 PM

The United Kingdom got only its second interest rate hike in over a decade on Thursday. Brexit will decide whether it gets another one any time soon.

The Bank of England raised its benchmark rate to 0.75% from 0.5% despite worries over the strength of the UK economy and uncertainty over Brexit.

The hike will make UK mortgages and loans more expensive, but should boost returns on cash tucked away in domestic savings accounts.

Some economists have raised doubts about the case for the rate hike.

Bank of England Governor Mark Carney has previously warned of dire economic consequences if Britain leaves the European Union in March 2019 without a comprehensive Brexit deal.

"We expect the Bank of England to wait until after Brexit in March 2019 before hiking again," said Kallum Pickering, senior economist at Berenberg.

Crashing out of the bloc without a deal could require the UK central bank to slash interest rates and introduce emergency measures in an effort to steady the financial system and wider economy.

The central bank acknowledged the risks on Thursday, saying in a statement that "any future increases in Bank Rate are likely to be at a gradual pace and to a limited extent."

"The Monetary Policy Committee continues to recognize that the economic outlook could be influenced significantly by the response of households, businesses and financial markets to developments related to the process of EU withdrawal," it added.

Carney said during a press conference that improving wage growth and a strong labor market led to the unanimous vote for a rate hike. He said the central bank wanted to act now instead of waiting for Brexit.

"We can't just wait wait wait through all of that," he said, adding that the bank is prepared to react quickly if economic conditions change.

Carney said the Bank of England is working closely with the UK Treasury and the European Central Bank to plan for a smooth Brexit transition that protects financial markets.

Related: Sanofi and Novartis are stockpiling drugs to prepare for Brexit

Central banks in many advanced economies have raised interest rates and moved to end stimulus programs as the global economy shakes off the lingering effects of the global financial crisis.

The US Federal Reserve has been steadily raising interest rates since late 2015. It held rates steady on Wednesday, but current plans involve at least two more hikes this year.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 155246

Reported Deaths: 4065
CountyConfirmedDeaths
Marion25151785
Lake13570355
St. Joseph9145161
Elkhart8759135
Allen8129228
Hamilton6117113
Vanderburgh576760
Tippecanoe369515
Hendricks3268133
Monroe325738
Porter313649
Johnson3105128
Clark293961
Delaware293274
Vigo260538
Madison235093
Cass224022
LaPorte222858
Warrick192965
Kosciusko182625
Floyd179167
Howard162466
Bartholomew141558
Dubois138626
Marshall137426
Wayne126930
Henry125429
Grant125339
Boone122250
Hancock118245
Noble115933
Jackson112915
Dearborn94928
Morgan93740
Lawrence87436
Daviess87133
Gibson87111
Clinton84716
Shelby81730
LaGrange80115
Harrison76224
Knox75610
Putnam72816
Posey7146
DeKalb71011
Fayette66618
Steuben6278
Miami6095
Jasper5945
White58515
Montgomery58322
Greene53337
Scott51813
Decatur50439
Adams4837
Whitley4556
Clay4467
Ripley4418
Sullivan43714
Wells4288
Wabash4119
Starke4077
Orange40425
Huntington3905
Spencer3906
Washington3753
Franklin37225
Jennings36713
Fulton3523
Randolph3529
Jefferson3415
Pike33018
Carroll32513
Perry31014
Jay3056
Fountain2943
Tipton27523
Vermillion2411
Parke2323
Newton22511
Rush2154
Blackford2093
Owen2051
Martin1990
Crawford1581
Pulaski1521
Brown1393
Ohio1297
Benton1100
Union1100
Switzerland920
Warren781
Unassigned0234

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 190430

Reported Deaths: 5161
CountyConfirmedDeaths
Franklin31466640
Cuyahoga19706682
Hamilton16687343
Montgomery10377189
Lucas8285373
Butler8276129
Summit6689265
Warren420064
Stark3796181
Mahoning3709286
Marion338850
Pickaway301146
Delaware287227
Lorain272889
Fairfield264457
Licking257966
Wood249681
Clark249456
Clermont245938
Greene229242
Trumbull2270134
Allen213073
Columbiana212887
Miami199958
Lake193659
Medina185642
Portage162068
Mercer152128
Wayne140269
Ross139436
Richland132324
Tuscarawas129024
Athens12052
Erie115553
Darke114451
Madison105415
Hancock104725
Auglaize100616
Putnam97427
Lawrence93025
Shelby90914
Muskingum8884
Geauga85950
Scioto8599
Belmont78827
Union7583
Ashtabula72648
Sandusky71122
Huron70912
Preble62418
Holmes61710
Seneca60114
Ottawa58430
Fulton53711
Henry47317
Jefferson4694
Clinton46413
Defiance46013
Jackson4598
Crawford4528
Fayette4498
Highland4304
Logan4233
Ashland3986
Champaign3983
Knox38416
Brown3793
Perry36611
Washington35124
Morrow3442
Hardin33613
Williams3354
Coshocton32112
Guernsey3218
Pike3000
Wyandot29513
Gallia29113
Van Wert2633
Meigs21012
Adams2096
Paulding2012
Carroll2007
Hocking1979
Monroe16118
Noble1290
Vinton963
Harrison803
Morgan780
Unassigned00
Fort Wayne
Clear
39° wxIcon
Hi: 50° Lo: 33°
Feels Like: 34°
Angola
36° wxIcon
Hi: 47° Lo: 31°
Feels Like: 31°
Huntington
Overcast
40° wxIcon
Hi: 49° Lo: 34°
Feels Like: 35°
Decatur
Clear
37° wxIcon
Hi: 50° Lo: 34°
Feels Like: 33°
Van Wert
Clear
37° wxIcon
Hi: 50° Lo: 34°
Feels Like: 33°
Cooler Saturday
WFFT Radar
WFFT Temperatures
WFFT National

Community Events