Today’s most anticipated event was a decision by the Bank of England on whether to raise interest rate. The central bank of the United Kingdom met analysts’ expectations and hiked rates .25, so now the rate in the UK stands at .75%, which is the highest in nine years. The Bank of England seemed to suggest a somewhat softer rhetoric for the future. Higher interest rates are expected to help keep the British economy stable as inflation has been above the ideal 2% craved by central bankers worldwide.
The economy of the United Kingdom seems healthy for now. There was a slowdown in growth early on in 2018, but more recent statistics have been positive. Wages are among the few things not going quite as planned. Moreover, Brexit is the big problem looming over Britain like a dark cloud, as many businesses have demanded more clarity on Brexit policies. If the British government fails to secure trade deals with the European Union, likely the economy will suffer quite a bit and international businesses might flee to other EU member states in order to avoid customs duties.
