Monetary Policy 

BoE base rate: Small rise, little damage

Chris Dillow

Chris Dillow

The most important fact about today’s rise in Bank rate, from 0.25 to 0.5 per cent, is that it will probably have only a slight impact on economic activity. James Cloyne and Patrick Hürtgen, two Bank of England (BoE) economists, have estimated that a quarter point rate rise cuts output by only around 0.15 per cent. And BoE governor Mark Carney said the impact of today’s move should be “no larger than usual”.

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