Bank of England expected to raise interest rates

August 02, 2018 - 1:45 am

LONDON (AP) — The Bank of England is expected to raise its benchmark interest rate for only the second time since the 2008 financial crisis as it weighs a strong jobs market and high inflation against concerns about Brexit.

Economists forecast that the bank's Monetary Policy Committee will raise the rate from 0.50 percent to 0.75 percent, the highest level since March 2009. Three of the panel's nine members voted to raise rates last month, indicating growing support for an increase.

Since then, economic figures have been mixed. Employment is at the highest since records began in 1971 and inflation is above the 2 percent target, at 2.4 percent. But growth has been weak this year, people are not spending much and companies are worried about the lack of progress in Brexit talks.

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