Interest rates: Will interest rates go up? Bank of England responds to Sterling crisis

A higher Bank Rate often strengthens the pound as it persuades investors to demand more of the currency.

Experts believe the rates also help encourage economic stability, which, in turn, leads to additional confidence in Sterling.

When Sterling plummeted to its record low last week, BoE officials said they would “not hesitate” to raise the rate in response.

While financial chiefs have chosen to wait until the next decision date of November 3, they have hinted at incoming action.