This article discusses how the Bank of England has lowered interest rates to a low of 0.9% in 2009 during financial crisis, but continued to keep it at that rate when the economy began to progress. But Britain's economy has been recovering fast and are being urged by the banks to raise the interest rates because the capacity within the economy could be used up soon as it adds to inflation rising. Because of the interest rates being kept low for so long, an abundant amount of the economy was already used up and is only getting smaller. Despite all of this, MPC members are very against raising the interest rates now because of weak inflation which effects their export market. While I can see why the banks are right in encouraging the rise in interest rates, MPC members of the UK are right, as they want to keep a trade surplus and not fall into a possible deficit making things worse. This means keeping their export market stable.
Website: http://www.theguardian.com/business/2014/oct/26/raise-interest-rates-bank-england-mpc-ian-mccafferty
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