Interest rates were again held at 0.75% when the Bank of England met in early November, with inflation gradually falling to 2% over three years and interest rates slowly rising.
A first uptrend is expected in mid-2019, but warned that its forecasts are based on a "smooth transition" for Brexit.
If this is not the case, bets are disabled and interest rates could be lowered again – or even increase.
The November Bank of England report set the expected rate for interest rates and the economy
The interest rate decision in November was accompanied by a quarterly inflation report, which anticipates the outlook for the economy and the expected rate of interest required to keep the cost of living at the 2% target.
The report states that "the economic outlook will depend to a large extent on the nature of the EU's withdrawal, in particular the form of new trade agreements, the smooth transition to them and the responses of households, businesses and financial markets.
"The impact on the appropriate path of monetary policy will depend on the balance of effects on demand, supply and exchange rates.
"In the opinion of the MPC, the monetary policy response to Brexit in any form will not be automatic and could go both ways."
Interest rate expectations have moved forward since the summer despite no-deal-Brexit concerns
Laith Khalaf, senior analyst at broker Hargreaves Lansdown, said: "A fragile UK economy that is slimming global demand and the emerging shadow of Brexit leave little room for the central bank to do anything for the time being.
"Markets are now pricing in a rise in interest rates in the middle of next year, although by then we should have greater clarity about the size and shape of Brexit, making monetary policy unpredictable over the next twelve months.
"It is worth noting that in response to Brexit, the Bank of England is shifting politics in both directions.
"So it could lower interest rates if unfair Brexit is hurting economic growth, even though it may be forced to raise interest rates when the pound has a run on it.
He added, "The range of possible permutations recalls how difficult it is to predict the financial impact of something as dynamic and complex as the Brexit.
"Even if you guess the right political outcome, asset prices may not be what you expect."
Was that a good budget and should Hammond lower taxes?
This is done before the Brexit budget.
Money for the NHS, small extras for schools, cash for streets, help for the high street and the baby rabbit in the hat – a rise in the basic and higher tax thresholds to £ 12,500 and £ 50,000 a year early.
Is the austerity policy really over? And thanks to the government, are the rich getting richer?
In the This is Money podcast, Simon Lambert, Lee Boyce and Georgie Frost analyze the budget for 2018.
Press play above or listen (and subscribe to the podcast on Apple Podcasts, Acast, Spotify and Audioboom) or visit the This is Money Podcast page.
The August rate is rising
Why is the bank adjusting interest rates?
The main task of the Monetary Policy Committee is to aim for 2% inflation, using rate hikes as a drag on the economy.
The increase in the base rate affects the pricing of loans to customers.
Increasing the cost of borrowing increases interest rates and makes banks spend less on lending.
Lower money creation is seen as a decline in inflationary pressures from wage increases and expenditures.
With unemployment at a record low and a slowdown in economic activity, economists suspect that inflation could spill over without interest rates rising.
There is also an argument that the bank should now raise interest rates as long as it is going well to give itself some leeway in the event of a recession in the future.
Finally, interest rates rose to over 0.5 per cent, almost a decade after the emergency cut in August.
The MPC of the Bank of England voted to raise interest rates to 0.75 percent. This removed concerns about the consumer economy and a no-deal-Brexit, as low unemployment and the reduction in unemployment would have earned an increase in the inflation rate.
The 9-0 vote was accompanied by a quarterly inflation report, which showed that despite the current increase, the market outlook for the next three years would rise more slowly than previously expected.
By the middle of next year, no further step is expected.
A sign of the Bank's confidence in the UK economy was a statement on quantitative easing in the Inflation Report. Previously, he had hinted that his shares would not be wound up from UK government bonds acquired in this way until interest rates reached 2%, while now expecting to do so if interest rates reached 1.5%.
However, this is still a long way off, as the bank's expected rate for key interest rates would not be 1.5 percent by 2021.
The rise in interest rates in November 2017
Finally, in November 2017, the Bank of England raised interest rates, more than a decade after the last rise.
The rise to 0.5 percent occurred when the bank tried to dampen inflation, but is controversial as it could slow the economy.
The same-day inflation report provided an expected path that was 0.7 percent at the end of next year, 1 percent in 2019, and then continued until 2020.
The rise in interest rates was widely expected and the Bank of England did little to dispel the belief in rising interest rates. If interest rates had not risen, the bank would have lost credibility in many places.
HOW DO YOU EXPECT THE FUTURE OF THE RATE?
We can not – no one can. However, we are looking at interest rates on overnight swaps to find out roughly when the money markets are forecasting that the key rate will rise from a low of 0.5 percent.
This is far from accurate business – not only is financial traders constantly making false predictions, but swap rates are just a snapshot of their views at a given time.
The overnight swap rates are moving significantly. Take a look at the chart below, which was published in the May 2013 Bank of England Inflation Report, which illustrates interest rate projections in May versus February. There are almost two years between the prospects, which are only a few months apart.
Please note that this chart is an illustration of market movements and not the current outlook for interest rates.
Like the Bank of England, we use the overnight index swap curve to see what the money markets are predicting for interest rates and how this is changing.
Economists are also predicting when interest rates will rise, often different from those signaled by the money markets.
We also frequently quote their views when they help shed light on the topic for the readers.
You can then consider all available information and make your own assessment as to when interest rates will rise.
Swap rates and money markets against mortgages and savings
If markets move a decent amount – and keep up – this can affect the pricing of some mortgages and savings accounts.
When swaps reach a rate hike earlier, fixed rate bonds will improve slightly over the following weeks. It also puts pressure on lenders to withdraw the best fixed mortgages.
With regard to swaps as a forecast, we have repeatedly warned in this summary that they are extremely volatile and should be treated with caution – they should be used as a guide to the feeling of swing rather than actual forecasting.
> Read the advice of mortgage lenders on exchange rates
Important note: Markets, economists and other experts have not achieved good results in recent years.
This is that Money has always been careful with any kind of prediction (including our own!). There is no guarantee that those who have made correct calls in the past will do so in the future.
We also urge consumers not to play with their personal finances when it comes to predicting interest rate volatility.
What determines rates?
The Monetary Policy Committee of the BoE meets once a month and sets the Bank's interest rate. The government's task is to keep inflation at a 2% target (and to ensure financial stability nowadays). So if inflation picks up, it raises interest rates.