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”.

To continue reading, subscribe today

and enjoy unlimited access to the following:

  • Tips of the Week
  • Funds coverage
  • Weekly features on big investment themes
  • Trading ideas
  • Comprehensive companies coverage
  • Economic analysis
Subscribe to Investors Chronicle

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now