UK interest rate up for 1st time in decade

Britain's key interest rate has been raised a quarter of a percentage point to 0.5 per cent - the first time it's increased since 2007.

The Bank of England has raised its key interest rate for the first time in a decade as it seeks to dampen down inflation largely stoked by last year's Brexit vote.

In a statement on Thursday, the bank said its rate-setting body had increased the benchmark rate to 0.5 per cent from the record low of 0.25 per cent.

Rate-setters were faced with a dilemma during their deliberations. Though inflation is running a full percentage point above their target rate of two per cent, the British economy has come off the boil since the vote to leave the European Union.


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Source: AAP



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