2% interest rate rises for UK banks
A 2% rate rise for the UK’s biggest banks will go into effect next week, the Bank of England has announced.
The move will see banks’ share price rise from £1.40 to £1,400.
Banks are set to earn 2% on deposits of up to £2,000 and 2% for any deposit above £3,000, as well as an extra 0.75% interest on loans of up $1,000 or $2,500.
The Bank’s move comes after it revealed it had raised the UK rate by 1.25 percentage points to 0.5%, following the Bank’s latest rate hike in June.
The increase follows a rise in the UK pound since the Brexit vote, which led to a sharp fall in the value of sterling.
Borrowers in the US have also seen the value and inflation rates of their savings plummet.