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Originally Posted by 1andrew1
They're being used to reduce inflation which is due to the weakened pound post the Brexit vote. It seems to have worked in this respect as the Pound has risen.
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The Bank's MPC had been expected to raise interest rates in May, but held fire because the economy went through a weak patch at the start of the year - partly because of the harsh weather conditions, dubbed the Beast from the East.
The Bank is now confident that the dip was temporary and that economic growth will recover from the 0.2% rate seen in the first quarter, to 0.4% in the second quarter and maintain that pace later in the year.
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And the reason for inflation going up.
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Why has the bank raised interest rates? Look no further than your payslip.
After five years of pay growing at a measly average of 1.75%, pay rises are now running at an average of 2.75% and are expected to go higher.
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