Bank of England Governor Mark Carney announces the Bank's first increase in borrowing costs since 2007, before the eruption of the global financial crisis. Rough cut (no reporter narration).
ROUGH CUT. NO REPORTER NARRATION. The Bank of England announced an interest rates hike for the first time in more than 10 years on Thursday (October 2), despite economic growth appearing weaker than before any other increase in borrowing costs in the past two decades. Governor Mark Carney announced a rise in base rates to the 0.5 percent they stood at from March 2009 until August last year, when they were halved to 0.25 percent after Britons voted to leave the European Union. With inflation hitting a five-year high of 3.0 percent in September and unemployment at a 42-year low, the central bank is worried the economy could overheat. But most think this would be a mistake: Britain's annual growth is running at its weakest in four years and Brexit talks are casting a shadow over the economy.