Be cautious, MPC hawks: A rate hike is too risky in these uncertain economic times

The Bank of England’s Monetary Policy Committee (MPC) is widely expected to raise rates today by 0.25 per cent, reversing the cut shortly after the June 2016 EU referendum.

 

This would bring the level back to 0.5 per cent, where it had languished for nine years before the cut last August.

 

This will be the first rise in 10 years. But will we come to see this as the same type of mistake that Jean Claude Trichet made when, as president of the European Central Bank, he twice raised rates in the Eurozone in 2011, just as the region was falling back into recession.

 

Read the full article here.