Bank of England announce interest rate rise

The Bank of England has hiked interest rates to 0.5% in the first rise for over a decade and signalled more increases are on the way as it looks to cool surging inflation.

Bank of England. Picture: Getty

Policymakers on the bank's nine-strong Monetary Policy Committee (MPC) voted 7-2 in favour of the quarter point rise, which marks the first rates increase since July 2007.The move comes as the bank looks to dampen Brexit-fuelled inflation, which it predicts will now peak at around 3.2% this autumn.The Bank's quarterly inflation report also suggested two more rate hikes were likely over the next three years to return inflation back to its 2% target, which could see rates hit 1% by the end of 2020.

Sign up to our daily newsletter

The i newsletter cut through the noise

Picture: PA
Picture: PA