Strong Global Economy Moves Bank of England to Raise Rates

Strong economic conditions and global demand were cited as key factors in the Bank of England's decision to raise Britain's short-term interest rate on Wednesday.

The Central Bank's Monetary Policy Committee (MPC) raised Britain's short-term rate by 0.25 percent, moving it from 5.00 to 5.25 percent.

The nine member MPC is said to have based their decision on rising retail sales, continued housing price increases and favorable labor market conditions. Various independent surveys reviewed by the committee reported marked increases in economic confidence measures.

Minutes from this MPC meeting will be published on September 22, 1999.