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.

Cases: 664446

Reported Deaths: 12663
CountyCasesDeaths
Marion909511650
Lake48568884
Allen36004640
Hamilton32182398
St. Joseph30166513
Elkhart25453419
Vanderburgh21300382
Tippecanoe20143203
Johnson16407361
Porter16042276
Hendricks15877300
Clark12018181
Madison11776319
Vigo11660231
Monroe10379163
Delaware9870179
LaPorte9802198
Howard9083199
Kosciusko8582111
Bartholomew7488147
Warrick7438151
Hancock7428133
Floyd7243170
Wayne6648192
Grant6446157
Boone610989
Morgan6106126
Dubois5925112
Dearborn549969
Cass547299
Marshall5439105
Henry542594
Noble510578
Jackson465167
Shelby461991
Lawrence4193113
Harrison402564
Gibson402083
Clinton396753
Montgomery389683
DeKalb387178
Knox357885
Miami357863
Whitley350237
Huntington347377
Steuben339555
Wabash332676
Putnam331260
Ripley327862
Adams324749
Jasper318143
White297952
Jefferson295874
Daviess285696
Fayette272156
Decatur271188
Greene262080
Posey261431
Wells258675
Scott251350
LaGrange241870
Clay241444
Randolph225676
Spencer218930
Jennings216344
Washington212827
Sullivan203639
Fountain202142
Starke189051
Owen183253
Fulton179837
Jay178528
Carroll176619
Perry173736
Orange171250
Rush165322
Vermillion161442
Franklin159635
Tipton148441
Parke140016
Pike128233
Blackford120727
Pulaski107344
Newton96632
Brown95140
Benton92213
Crawford91713
Martin80314
Warren75914
Switzerland7558
Union67510
Ohio54011
Unassigned0432

Ohio Coronavirus Cases

Data is updated nightly.

Cases: 974480

Reported Deaths: 16750
CountyCasesDeaths
Franklin1125851214
Cuyahoga964441832
Hamilton736841034
Montgomery47424903
Summit40474802
Butler35678505
Lucas35588685
Stark29495803
Warren22510271
Lorain22111414
Mahoning19532537
Lake18471318
Clermont18459201
Delaware16537116
Licking15037189
Fairfield14587180
Trumbull14381413
Greene13626218
Medina13448226
Clark12319248
Wood11604163
Portage11078164
Allen10804216
Richland10334183
Miami10048189
Muskingum8204112
Columbiana8160200
Pickaway8079107
Tuscarawas8063227
Marion8006125
Wayne7898193
Erie6925140
Ross6161128
Geauga6097136
Hancock6013116
Ashtabula5993152
Scioto597780
Lawrence527218
Union515237
Darke5040114
Belmont497659
Huron4838107
Jefferson4814107
Sandusky4785108
Seneca4709107
Washington470991
Athens465447
Mercer459180
Auglaize456480
Shelby442479
Knox4045101
Putnam400090
Madison394253
Ashland381381
Fulton381258
Defiance372983
Brown372244
Crawford359096
Logan356072
Preble353678
Clinton341152
Highland328649
Ottawa324869
Williams302962
Jackson290745
Champaign289249
Guernsey288444
Perry270447
Fayette269441
Morrow260934
Henry247058
Hardin246558
Holmes243493
Coshocton238054
Van Wert230154
Gallia223131
Adams217436
Pike216026
Wyandot211747
Hocking194754
Carroll181641
Paulding160530
Meigs135930
Noble129333
Monroe116927
Morgan101119
Harrison100724
Vinton76613
Unassigned00
Fort Wayne
Clear
28° wxIcon
Hi: 45° Lo: 21°
Feels Like: 22°
Angola
Clear
25° wxIcon
Hi: 42° Lo: 20°
Feels Like: 25°
Huntington
Partly Cloudy
24° wxIcon
Hi: 45° Lo: 20°
Feels Like: 24°
Fort Wayne
Clear
28° wxIcon
Hi: 45° Lo: 22°
Feels Like: 22°
Lima
Partly Cloudy
25° wxIcon
Hi: 45° Lo: 21°
Feels Like: 16°
Seasonal Saturday
WFFT Radar
WFFT Temperatures
WFFT National

Community Events