Economics: Interest rate increase unlikely to disrupt

With the Bank of England's Monetary Policy Committee expected to raise interest rates this week, eco...

With the Bank of England’s Monetary Policy Committee expected to raise interest rates this week, economists are confident the hike is unlikely to immediately disrupt current healthy economic growth. The MPC is expected to raise rates from 4.75% to 5% on Thursday, following the first borrowing rate increase in two years in August. If the rate is increased, the borrowing price will be at its highest level since September 2001. Sebastian Mackay, economist at Scottish Widows Investment Partnership, says the key point to consider is current inflation concerns. “Headline CPI inflation is ...