The Bank of England Governor, Mark Carney, recently suggested that the base rate increase may cease at 4.5 percent. This news has been welcomed by many, as it could potentially mean that the UK economy is beginning to stabilise and recover from the financial crisis of 2008.
The base rate is the rate at which banks and other financial institutions borrow money from the Bank of England. It is used to control the supply of money in the economy, and can have a significant impact on the cost of borrowing for businesses and individuals. When the base rate is increased, it makes borrowing more expensive, which can lead to slower economic growth.
The Bank of England has been gradually increasing the base rate since August 2017, when it was 0.25 percent. This was done in an effort to combat rising inflation and ensure that the UK economy remains stable. The most recent increase was in August 2018, when the base rate was raised to 0.75 percent.
Mark Carney’s suggestion that the base rate may cease at 4.5 percent is good news for businesses and individuals who are looking to borrow money. It means that they will not face further increases in the cost of borrowing, which could help to stimulate economic growth.
However, it is important to note that this is only a suggestion from Mark Carney and not an official announcement from the Bank of England. The Bank of England will continue to monitor the economic situation and make decisions based on what is best for the UK economy.
Overall, Mark Carney’s suggestion that the base rate may cease at 4.5 percent is welcome news for businesses and individuals who are looking to borrow money. It could help to stimulate economic growth and ensure that the UK economy remains stable. However, it is important to remember that this is only a suggestion and not an official announcement from the Bank of England.