Bank of England to raise intrest rates to 0.75 percent in May

Vastavam web: The Bank of England will raise its key interest rate to 0.75 percent in May, nearly all the 76 economists polled by Reuters said, then add another 25 basis points just before Britain is due to leave the European Union early next year.Soon after the June 2016 vote to split from the EU, the Bank cut 25 basis points from borrowing costs, taking them to a record low of 0.25 percent. It reversed this move in November, a decision most economists said at the time was a policy error.

Growth has continued since the referendum, and while Britain has fallen from the top to the bottom of the fastest-growing economies among its peers, the poll forecast only a median 10 percent chance of a recession this year.Unemployment fell to its lowest since 1975 in the three months to February, official data showed on Tuesday, although wage growth in the period was not as strong as expected.

But the BoE has said falling unemployment should start to push up pay more quickly, the main reason it gave for being likely to raise interest rates faster than it had previously thought.