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.

West Lafayette
Broken Clouds
40° wxIcon
Hi: 46° Lo: 29°
Feels Like: 33°
Kokomo
Clear
38° wxIcon
Hi: 43° Lo: 29°
Feels Like: 31°
Rensselaer
Overcast
37° wxIcon
Hi: 44° Lo: 28°
Feels Like: 30°
Fowler
Overcast
37° wxIcon
Hi: 45° Lo: 28°
Feels Like: 30°
Williamsport
Broken Clouds
40° wxIcon
Hi: 46° Lo: 28°
Feels Like: 33°
Crawfordsville
Overcast
42° wxIcon
Hi: 46° Lo: 28°
Feels Like: 36°
Frankfort
Overcast
40° wxIcon
Hi: 45° Lo: 29°
Feels Like: 33°
Delphi
Overcast
39° wxIcon
Hi: 45° Lo: 28°
Feels Like: 33°
Monticello
Overcast
40° wxIcon
Hi: 45° Lo: 28°
Feels Like: 32°
Logansport
Broken Clouds
37° wxIcon
Hi: 42° Lo: 27°
Feels Like: 30°
Fair Weather Continues
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 350970

Reported Deaths: 5973
CountyCasesDeaths
Marion47763893
Lake30007480
Allen20256333
Elkhart18510245
St. Joseph18319243
Hamilton14971181
Vanderburgh10862134
Tippecanoe991133
Porter915392
Johnson7484177
Hendricks7143163
Vigo6580105
Monroe591453
Madison5732125
Clark564884
Delaware5434108
LaPorte5171104
Kosciusko501846
Howard400578
Bartholomew367565
Warrick360574
Wayne355192
Floyd348878
Marshall333949
Cass319132
Grant315652
Hancock307762
Noble284750
Boone274656
Henry272141
Dubois262934
Jackson255237
Morgan251845
Dearborn249733
Gibson217033
Shelby212861
Knox207722
DeKalb204438
Clinton202224
Lawrence200549
Wabash190623
Miami188118
Adams187424
Daviess174246
Montgomery167029
Jasper165015
Ripley164521
Fayette163837
Steuben163016
Harrison162024
LaGrange156533
Whitley156516
Huntington147211
White147024
Putnam142530
Wells142533
Decatur141846
Randolph139524
Clay138026
Jefferson137618
Posey133620
Scott124024
Greene117954
Jay113315
Sullivan109018
Jennings102415
Starke100828
Spencer9578
Fulton94219
Fountain9228
Perry88021
Washington8789
Franklin79528
Carroll79313
Orange74428
Vermillion72810
Owen71410
Parke6796
Tipton66527
Blackford62715
Rush6278
Newton62113
Pike57421
Pulaski48020
Benton4423
Brown3995
Martin3896
Crawford3421
Union2972
Switzerland2765
Warren2763
Ohio2477
Unassigned0285

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events