First UK rate hike in a decade is probably the last for a while
London — Bank of England policy makers raised interest rates for the first time in a decade, yet expressed concern for Britain’s Brexit-dented economy by indicating that another increase was not imminent. Led by governor Mark Carney, the monetary policy committee voted 7-2 on Thursday to increase the benchmark rate to 0.5% from 0.25%. The minutes of their meeting underscored concern that the economy is fragile as the 2019 split with the European Union nears. Crucially, policy makers omitted language from previous statements saying that more hikes could be needed than financial markets expect. That implies that officials are comfortable with pricing for two more quarter-point increases, roughly one by late next year and another in 2020. The more dovish outlook than investors anticipated pushed the pound down nearly 1% against the dollar to as low $1.3096 and gilts rose. UK money markets pushed back expectations for the next shift to September 2018 from August 2018 previously. "Intere...
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