As predicted, the Bank of England (BoE) raised rates by 25bps to 0.75% last Thursday in a unanimous decision from the Monetary Policy Committee (MPC), as UK growth rebounded and construction output and retail sales rose.

Although the BoE was generally positive on the outlook, sterling continued to decline in the face of the rate hike due to Brexit worries. Bank governor Mark Carney warned that inflation would not just be affected by the terms of Brexit, but how households, businesses and financial markets reacted.

“It’s not as simple as saying, ‘Brexit equals a reduction in interest rates’,” he said.