Commenting on today’s announcement, Danske Bank Economist Conor Lambe said:
“The Bank of England’s Monetary Policy Committee (MPC) announced an increase in the UK interest rate to 0.5 per cent today.
“This was the first increase since 2007 and it sees interest rates return to where they were from March 2009 until August last year, when the MPC cut rates in response to the UK’s vote to leave the European Union.
“On its own, today’s increase is likely to have only a modest impact on most individuals and families. On the borrowing side, looking at the housing market, many mortgage holders are now on fixed rates and so the interest they pay on their borrowing won’t change immediately. But variable rate mortgage holders will likely see a slight rise in their monthly mortgage payments. For savers, they may see an increase on the rate paid on their deposits.
“However, for both savers and borrowers, an interest rate of 0.5 per cent still represents a low rate compared with long-term historic trends.
“Looking forward, the MPC has made it clear that any further rises in interest rates will take place at a gradual pace.”
This comment was published in response to the Monetary Policy Committee's UK interest rate announcement in November 2017.