The bosses of the Bank of England have continued to hold on to interest rates after the breakthrough of the month last month

Interest rates are not expected to rise again after a sharp rise to 0.75% last month

Chiefs at the Bank of England are expected to keep interest rates stable on Thursday after last month's milestone increase and after positive updates on the economy.

The Monetary Policy Committee (MPC) is expected to stop voting after a 0.75 percent increase from 0.5 percent last month – the highest level in nearly a decade.

The decision to make at noon comes after Chancellor Philip Hammond and confirmed Tuesday that Mark Carney will remain the Governor of the Bank of England until January 2020.

The seven-month extension to Mr Carney's stay was introduced so that he can help support the UK through Brexit.

Interest rates are not expected to rise again after a sharp rise to 0.75% last month

Interest rates are not expected to rise again after a sharp rise to 0.75% last month

Official figures, released on Monday, show that the British economy has seen an encouraging boost, with growth of 0.3 percent in July and 0.6 percent on a three-month basis.

It is expected that these data will exceed the expectations for growth in the third quarter by 0.4 percent and will lead the economy back on track.

The heat wave of this summer and the World Cup have boosted the expansion of the services sector, while construction output has reached a record high.

However, economists do not expect the Bank to raise interest rates again for some time, possibly only after the Brexit took place next year in March.

Howard Archer, chief economic adviser at the EY ITEM Club, said: "The Bank of England will most likely consider GDP growth … as justification for its decision to raise interest rates from 0.50 percent in August 0.75 percent. & # 39;

Official figures for the second quarter showed that while growth generally recovered by 0.4 percent, the expansion in the last month faltered, with only 0.1 percent growth in June, raising the fear that the bank might would have increased rates too quickly.

Despite the better performance in July, it is expected that the growing fear of Brexit negotiations will still be the hand of the MPC.

Mark Carney has been the Governor of the Bank of England since 2012 and has announced that he will remain in the role until 2020 to facilitate the smooth transition from the UK to the EU

Mark Carney has been the Governor of the Bank of England since 2012 and has announced that he will remain in the role until 2020 to facilitate the smooth transition from the UK to the EU

Mark Carney has been the Governor of the Bank of England since 2012 and has announced that he will remain in the role until 2020 to facilitate the smooth transition from the UK to the EU

Mr. Archer said: & # 39; We no longer expect (increases in) interest rates until after the departure of the UK in March 2019, given the large uncertainties that may arise in the run-up to the departure of the UK. ;

Although Mr. Carney said in August that interest rate hikes & # 39; limited & # 39; and & # 39; gradually & # 39; would be, he said that interest rates should rise further in the next few years to bring inflation back to the 2 percent target.

After a short recent break, inflation appears to be rising again and in July it is rising to 2.5 percent from 2.4 percent in June, the first time since November. However, this was largely due to higher transport costs.

There was increasing speculation in the press about whether Mr. Carney would stay until 2020, but he told MPs last week that he was willing to do everything he could to ensure a smooth Brexit and transition at the top of the bank. promote.

Still, questions are still being asked by some people who are concerned about the lack of transparency regarding conversations between Mr. Carney and the Chancellor.

Former MPC member Andrew Sentance was one of those who condemned the trial.

After it was announced that Mr. Carney would stay with the bank, Mr. Sentance wrote on Twitter that it was totally at odds with the spirit and letter of the Bank of England Act of 2012. A shocking abuse of proceedings that completely undermines the concept of BoE independence. & # 39;

.