Gold Silver Reports – Bank of England Hikes Rates – The Bank of England raised interest rates for the first time in more than 10 years on Thursday and said it expected only “very gradual“ further increases over the next three years.
The BoE said its nine rate-setters voted 7-2 to increase its benchmark Bank Rate to 0.50% from 0.25%, reversing the emergency cut made in August 2016, shortly after the shock decision by British voters to leave the European Union.
It was the first time that the BoE increased borrowing costs since 2007, before the eruption of the global financial crisis, which tipped Britain into its deepest recession in decades.
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However, sterling fell around a cent against the US dollar and gover nment bond yields dropped by 5 basis points as markets homed in on the BoE’s cautious approach to future rate rises. The BoE did not repeat previous language about markets underestimating the extent of future rises. – Neal Bhai Reports
