According to latest figures from the Office for National Statistics, the UK’s economy had a higher than expected growth in the three months to September. This does however increase the chances of a rise in interest rates, a vote on which is due on the 2nd November.Gross Domestic Product for the quarter rose by 0.4% compared with 0.3% for the first two quarters of 2017.
The figures are expected by Economists to be a green light for the rate rise which is due next week. If the rates do rise it will be for the first time since 5 July 2007. The financial markets are now indicating with a probability rate of 84% that the rates will rise from the current record low of 0.25% when the Bank of England’s Monetary Policy Committee (MPC) meets next Thursday 2nd November.
The Bank of England has advised that any rate rise that may be made will be small and that future rate rises will be gradual. What are your thoughts on the potential rate rises? Let us know by getting in touch on LinkedIn or by calling us on 01275 817320.