Bank of England raises UK interest rates to 0.75 %

The Bank of England has raised the interest rate by 0.25 % to 0.75%- the highest level since March 2009. This move will increase the interest costs of more than three-and-a-half million residential mortgages that have variable or tracker rates. It will be welcomed by savers, who could see a lift in their interest rates over the coming months.

Mark Carney, the governor said, The bank is now confident that the dip was temporary and that economic growth will recover from the 0.2% rate seen in the first quarter to 0.4% in the second quarter and maintain that pace later in the year. The Bank sees continuing “modest” economic growth of 1.4 % this year and an increase to 1.8% next year.