BoE has 'room to raise interest rates' without hitting borrowers

Jenna Towler
clock

The Bank of England (BoE) could increase interest rates a "fair amount" without hurting homeowners taking advantage of the government's Help to Buy scheme, according to one of its policymakers.

The BBC reports Ben Broadbent, who sits on the committee that decides rates, said rates could go up a fair amount before "borrowers got into great difficulties". But he added a rate rise must not be allowed to "choke off" recovery. The report explained rates would only increase if the economy was in good health, or if inflation was out of control, Broadbent said. "We want to ensure that this recovery continues and is not choked off by a premature rise in interest rates," he told Sky News. Interest rates have been at record lows of 0.5% since 2009. The report said a rise would...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

The average G20 country will see inflation fall from 7.8% last year to 6.1% this year

UK faces ongoing higher inflation than most G20 countries

2023 forecast from OECD says UK will avoid recession

Elliot Gulliver-Needham
clock 07 June 2023 • 1 min read
Inflation drops to 8.7% in April but remains above expectations

Inflation drops to 8.7% in April but remains above expectations

Latest Office for National Statistics data released

Professional Adviser
clock 24 May 2023 • 2 min read
Between 2009 and 2022, the Bank helped the Treasury earn more than £100bn in profit thanks to historically low interest rates.

BoE projects £100bn payment from Treasury to cover QE losses

Govt needs to pay almost £30bn a year in 2023, 2024 and 2025

Valeria Martinez
clock 03 May 2023 • 2 min read