The prospect of the first interest rate rise in a decade has sent the pound to its highest level since the day of the Brexit vote and put debt-laden consumers on notice of higher borrowing costs. A member of the Bank of England monetary policy committee fuelled expectations that rates could go up as soon as November, after he put forward the arguments for an increase “as early as in the coming months”. He also hinted that a rate rise greater than 0.25% may be needed. After the MPC meeting, financial markets suggested there was a 42% chance of a rate increase in November, up from 18% a week ago. He also pointed to expectations that salaries will increase, but warned Brexit could have a more negative impact on the economy than expected, which might force policymakers to reverse any interest rate decision.

Source: The Guardian September 15, 2017 08:50 UTC