News Release
Bank of England Raises Interest Rates by 0.25% to 7.00%
07 August 1997
The Bank of England's Monetary Policy Committee has today voted to raise the Bank's official dealing rate (the repo rate) by 0.25% to 7.00%. The increase takes immediate effect.
The Committee reviewed the latest monetary and economic data and discussed the analysis and inflation projection to be incorporated in the Bank's Inflation Report which will be published on 13 August. It recognised that the appreciation of the exchange rate over the past year is putting severe pressure on businesses exposed to international competition. Nevertheless, in the light of the prospect for domestic demand and on the basis of all the evidence currently available, the Committee judges that today's rise is necessary to put the economy on track for achieving the inflation target of 2½% looking two years ahead. Although the present strength of sterling reflects in large part factors outside the influence of UK monetary policy, upward pressures on the exchange rate should be reduced by the perception that interest rates have reached a level consistent with the inflation target.
The previous change in interest rates was a rise of 0.25% on 10 July.
Minutes of today's Monetary Policy Committee meeting will be published on Wednesday, 17 September. Minutes of the meeting held on 10 July will be published on Wednesday, 13 August.
Key Resources
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News Release - Bank of England Raises Interest
Rates by 0.25% to 6.75%, 10 July 1997 Read |
