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Base Rate
Posted: August 2nd, 2018, 2:57 pm
by Dod101
I gather Base Rate has just been increased to 0.75%, not a huge increase but I suppose significant because a) it is a 50% increase on the previous rate, b) it hopefully suggests that the economy can stand it and c) it is another step towards 'normality'.
Dod
Re: Base Rate
Posted: August 2nd, 2018, 3:48 pm
by Slarti
Following a US rate increase, so as to help keep £/$ from dropping.
Slarti
Re: Base Rate
Posted: August 2nd, 2018, 4:36 pm
by Dod101
Maybe Slarti but I think it is more to do with the inflation rate. I do not think central bankers worry too much about exchange rates. Market forces are supposed to do that.
Dod
Re: Base Rate
Posted: August 2nd, 2018, 5:46 pm
by Parky
In fact the £/$ rate dropped significantly, the opposite of what is normally expected. Maybe the forex dealers were hoping for a 0.5% rise? Strange times we live in.