United kingdom rises its bank rate. whats the sugnificance.

in the middle of this week, the united kingdom raised its rate a really big move to curb the economic changes in the British economy. the British economy has been facing a rise in inflation to levels last seen in the '90s. also, the real estate prices were going to the roof in the UK an area of concern to the British people and the government. the rates were raised to 0.25% from 0.1%

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the governments were trying to avoid the use of monetary policies like interest rates to curb inflation saying that its caused by the shortage in supply to meet demand but the UK was the first G7 country to increase its rates. this gave a boost to the British Pound and it may be an area to watch for forex traders as we know that increase in interest rates makes that countries currency is more attractive.

the UK also refused to cut back to its bond-buying policy which has been floating more money into circulation so the question of the interest rates taking effective impact is something to watch out for. but we are about to see a trend of big economies raising their rates so watch out. to bond buyers of the UK government bonds, my advice is to buy and buy for we may see more interest raises hence increase in value of the bond at hand.