The Bank of England announces that interest rates will increase to 0.5%, the first rise in a decade

The Bank of England has raised interest rates for the first time in a decade, marking a shift in economic policy. The decision comes amid a strong labor market and moderate economic growth. However, the move has sparked debate, with some questioning its timing. The Bank expects two more rate hikes in the coming years, contingent on economic performance and Brexit outcomes. The impact of these changes will gradually affect the economy, signaling a return to normalcy.

What significant event coincided with the Bank of England's interest rate increase?

• The election of David Cameron

• The introduction of the Euro

• The fall of Lehman Brothers

• The launch of the iPhone

What is one reason the Bank of England decided to raise interest rates?

• To decrease unemployment

• To control inflation

• To boost household spending

• To increase exports

Which sector is NOT mentioned as contributing to the current economic growth?

• Government spending

• Exports

• Business investment

• Household spending

What is a major factor that could influence future interest rate decisions?

• The nature of the Brexit agreement

• The outcome of the US elections

• The price of oil

• The performance of the stock market

How many more rate increases are expected in the next few years, according to the governor?

• Two

• One

• Four

• Three