20:59 GMT14 August 2020
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    Altering the national base interest rate is just one of the tools available to the Bank of England to influence the economy to achieve its price inflation target and other monetary policy objectives.

    Experts from the Bank of England (BoE) voted to increase the UK's base interest rate on Thursday, as economists and business leaders predicted earlier in the week.

    Specifically, the Monetary Policy Committee (MPC) voted to increase the rate from 0.5 percent to 0.75 percent — the highest it's been since the 2009 global economic crisis.

    READ MORE: PM May's Brexit Deal Would Cost Each Brit £500 Every Year For a Decade – Report

    The central bank can alter the base rate to achieve its monetary policy objectives, primarily attempting to achieve its sub two-percent price inflation target.

    Meanwhile, in another disconcerting economic development, data published in a survey on Wednesday indicated British manufacturers were scaling down production as a result of the uncertainty brought about by Brexit, and the prospect of an international trade war.

    Although most experts expected a hike to be announced on Thursday, some expressed their doubts, with former MPC member David Blanchflower claiming that increasing interest rates amid the uncertainty surrounding Brexit would not be wise and was unlikely to happen.

    Brexit talks are continuing between the UK and Brussels, but negotiators remain deadlocked on a number of matters, including maintaining Britain’s access to the EU market once it withdraws from the customs union and single market.

    READ MORE: Germany Reportedly Denies Offering Brexit Plan to UK to Avoid 'No Deal' Scenario


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    interest rate, inflation, trade, Brexit, Bank of England, European Union, Mark Carney, United Kingdom, Brussels
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