Bank of England announces bank rate rise to 0.75%, highest since 2009

August 3, 2018
bank of england interest rate

The Bank of England yesterday announced a bank rate rise to 0.75% which is the highest since 2009.

The Bank of England’s Monetary Policy Committee (MPC) at its meeting 1st August 2018 voted unanimously 9-0 to increase base rate by 0.25% to 0.75%.

The Committee voted unanimously to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £10 billion. The Committee also voted unanimously to maintain the stock of UK government bond purchases, financed by the issuance of central bank reserves, at £435 billion.

Since the May Inflation Report, the near-term outlook has evolved broadly in line with the MPC’s expectations. Recent data appear to confirm that the dip in output in the first quarter was temporary, with momentum recovering in the second quarter. The labour market has continued to tighten and unit labour cost growth has firmed.

The MPC’s updated projections for inflation and activity are set out in the August Inflation Report and are broadly similar to its projections in May.

Read the Bank of England announcement 2nd August 2018 in full click here.

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Nationwide House Price Index – Thoughts from the Industry

The latest Nationwide House Price Index for July 2025 shows that: House prices increased by 0.6% between June and July of this year. On an annual basis, the average house price increased by 2.4% up from a 2.1% annual rate of growth in June. As a result, the average UK house price now sits at…
Read More →
Breaking News

Nationwide House Index – July 2025

Annual house price growth edges higher in July Annual rate of house price growth increased modestly in July to 2.4%, from 2.1% in June House prices were up 0.6% month on month UK house price to earnings ratio at lowest level in over a decade at c.5.75 Headlines Jul-25 Jun-25 Monthly Index* 540.5 537.4 Monthly…
Read More →
Breaking News

Late payment reforms offer hope for SMEs

The Government has unveiled its Small Business Plan aimed to support SMEs and unlock growth. This plan outlines their intention to tackle late payments, an issue which costs the UK economy £11bn a year and forces 38 businesses to shut down every day. Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said:…
Read More →
Breaking News

Late payment reform is welcome, says FMB

Measures announced as part of the Government’s ‘Small Business Plan’, to tackle late payments and tool theft, futureproof skills, and improve access to finance, are welcome steps to create a more level playing field for small building companies, say the Federation of Master Builders (FMB). Brian Berry, Chief Executive of the FMB commented: “Late payments…
Read More →
Social Housing 2019
Breaking News

Build to Rent sees global surge

Build to Rent Goes Global: New Data Reveals Surge in UK, US, Australia and New Zealand New global data from Inventory Base reveals that Build to Rent (BTR) is no longer a UK phenomenon. n, it’s a rapidly expanding housing model gaining serious traction across New Zealand, Australia, and the United States. Nowhere is this…
Read More →
Breaking News

Number of estates paying IHT jumps 13%

HMRC has released its annual inheritance tax (IHT) stats for the 2022/23 tax year. Headlines include: Number of estates paying inheritance tax rose 13% to 31,500. The average IHT bill fell by 1.4% to £212,000. 0.03% (202) of estates paid 11% of all inheritance tax and 1% of estates paid around 65% of all inheritance…
Read More →