News Release
Bank of England raises interest rates by 0.25% to 5.25%
08 September 1999
The Bank of England's Monetary Policy Committee today voted to raise the Bank's repo rate by 0.25% to 5.25%.
The Committee reviewed developments since its last meeting, including world demand, the strength of consumption and the housing market, and continuing tight conditions in the labour market. Although inflation is expected to remain below the target of 2½% in the short term, the Committee concluded that a rise in interest rates was necessary to keep inflation on track further ahead, and that an early move could lower the level at which interest rates might otherwise need to be set. It therefore voted to increase the repo rate by 0.25% to 5.25%.
The minutes of the meeting will be published at 9.30am on Wednesday 22 September.
Note for Editors
The previous change in interest rates was a reduction of 0.25% to 5.0% on 10 June 1999.
