Bank of England raises base rate to 4.75%

Analysts and economists had anticipated the rise by the Monetary Policy Committee, as consumer borrowing is still strong and house prices are continuing to climb. This is the fourth rate rise by the BoE since November 2003. However, representatives at the Institute of Directors had earlier this week hoped for a 50 basis point rise to stem inflationary pressure as executives believe this will not discourage consumers from further spending, or slow the housing market sufficiently. Today, Graeme Leach, chief economist at the IoD decision says raising interest rates by a quarter point ...