>> Today, the MPC is raising bank rate by a of a quarter percent to three quarters percent.>> Bank of England Governor Mark Carney raising interest rates, Thursday, the UK's benchmark rate hitting its highest level since 2009. It's finally back above emergency levels set more than nine years ago.
For consumers, it means higher payments on mortgages and loans. But the Bank's rate setters were unanimous about the move. Policymakers say the British economy is operating at its speed limit, despite a sluggish start to the year. They predict it will grow at 1.4% this year and is at risk of overheating if there is no hike.
But skeptics say the increase is premature. They point to the uncertainty of a Brexit and concerns a trade stand off between Washington and Beijing could hit the global economy. Reuters's Andy Bruce is in London.>> British Chambers of Commerce, they think businesses what they want in times like this, that certainty is the best option.
Just leave things as they are. Also there's some major banks, for instance, HSBC and UBS. Their view is actually, inflation pressure is starting to weaken, not strengthen. Which would mean a rate hike is unnecessary. Maybe a big risk and something that will hurt consumers who are already in debt.
>> The world's fifth biggest economy has slowed since the decision to leave the European union. And with less than eight months to Brexit, the nature of her future trading relationships remains unclear. On Thursday Carney signalled there'd be no hurry to raise rates further. And stressed that all bets on whether central bank's rates are headed will be off, if Britain fails to get a Brexit deal.