UK in­ter­est rate hike in pipe­line

The Star Early Edition - - BUSINESS REPORT -

THE BANK of Eng­land (BoE) said it was likely to raise in­ter­est rates in com­ing months if the economy and price pres­sures kept grow­ing, flag­ging Bri­tain’s first rate hike in a decade. Pol­i­cy­mak­ers voted 7 to 2 yes­ter­day to keep rates on hold for now at a record-low 0.25 per­cent, as ex­pected. But in a week when data showed UK prices ris­ing faster and un­em­ploy­ment fall­ing to a four-decade low, they said their tol­er­ance for above-tar­get in­fla­tion was less­en­ing. The Brexit vote has put the BoE in a dilemma as it sought to bal­ance the need to sup­port the economy through the shock of leav­ing the EU in March 2019.

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