BOE hikes rates for the first time in a decade

London

THE Bank of England (BOE) raised interest rates for the first time in more than 10 years on Thursday but sterling fell sharply as the central bank said it expected only "very gradual" further increases over the next three years.

The BOE said its nine rate-setters voted 7-2 to increase its benchmark Bank Rate to 0.50 per cent from 0.25 per cent, reversing an emergency cut made in August 2016, shortly after Britons unexpectedly voted to leave the European Union (EU).