Analysts weigh the effects of rate hike on UK economy

The Bank of England is widely expected to raise interest rates for the first time in more than 10 years next week, after the next meeting of its monetary policy committee.

Most economists polled by Reuters are not persuaded a rate rise is necessary, and its symbolic value is likely to overshadow its fairly modest effect on the economy.

The public reaction to a quarter-point increase in rates to 0.5% cannot be calculated precisely. The British public could take fright at a first rate rise since 2007, especially at a time of weak growth as the country prepares to leave the EU.