Mark Carney, the Governor of the Bank of England, has said that he expects interest rates to rise this year, but that they may be slower because of the impact of Brexit. The markets are expecting a 0.25% rate rise in May, but Carney warned that this wasn’t inevitable.
“The biggest set of economic decisions over the course of the next few years are going to be taken in the Brexit negotiations and whatever deal we end up with. And then we will adjust to the impact of those decisions in order to keep the economy on a stable path”.
Interest rates are currently at 0.5%, but a rise to 0.75% is expected by the end of 2018 in a bid to keep control of inflation. The bank increased interest rates from 0.25% to 0.5% in November 2017, the first increase in a decade.