Woolwich comment on BOE base rate decision

Today’s decision is one instance where the MPC is happy to wait and see how households react to last months rate increase first, before raising interest rates any higher.

But, the improvement in the domestic and international economic landscape means the MPC will find it necessary to raise rates further early next year.

As it stands though, the MPC have said that they intend to do this in a gradual manner given the uncertainty of just how households will react to rate hikes against a backdrop of high levels of consumer indebtedness.