2 August 2018 - The Bank of England increased interest rates today for just the second time in a decade. The Monetary Policy Committee (MPC) voted to increase the base rate from 0.50% to 0.75%, marking the first move away from 'emergency' levels.
Commenting on the move, Darius McDermott, managing director of Chelsea Financial Services, said: “This was the right move from the Bank of England. If it didn't do it now, you would have had to wonder if rates would ever move again and this gives Mark Carney a little room to manoeuvre if conditions worsen due to a hard Brexit or indeed any other event that could knock economic growth.
“In my view, there is still no need for investors to alter portfolios as a result of this change. I fully expect the Bank of England to continue to take a slow pace with any future raises. So there is little reason for investors to make any changes to their portfolios, especially as this rise was already priced into markets.
“Cash accounts may be slightly more attractive if banks pass on the rise to consumers, but other assets are still offering better potential rewards".