Interest rates rise
The Bank of England’s monetary policy committee (MPC) put up the base rate of interest for the first time in almost four years today.
The decision to increase the rate by a quarter percentage point to 3.75 per cent came in line with analyst predictions and amid concern that the economy may be overheating.
It is hoped that therise, the first since February 2000, will be enough to slow the booming housing market and address the spiralling level of consumer debt.
Industry leaders have warned that the MPC will have to ensure that any increase did not damage recovery in certain sectors of the economy – namely manufacturing.
Despite signs of a turn around, manufacturing firms are continuing to shed jobs at an alarming rate with some union leaders warning of a meltdown.
Today’s decision will come as a blow to the sector, which relies heavily on the competitiveness of its exports.
