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LONDON Authentic Walter Payton Jersey , Nov. 2 (Xinhua) -- The Bank of England (BoE) has raised British interest rates for the first time in 10 years.


The 25-basis point rise announced on Thursday took the rate from a record low of 0.25 percent to 0.5 percent. The record low of 0.25 percent had been reached when the central bank cut the rate in August last year.


This 0.5 percent rate had held since the depths of the financial crisis in 2009, and last August cut was part of a three-pronged package of stimulation intended to head off the anticipated negative effects on the economy of the Brexit referendum vote in June.


""The BoE finally pulled the monetary policy trigger and delivered the expected interest rate hike. Given the Monetary Policy Committee (MPC)'s recent markedly more hawkish stance, a failure to follow through with an interest rate hike would have seriously threatened the BoE's credibility,"" Howard Archer, chief economic adviser at EY ITEM Club Eddie Goldman Jersey , a London-based financial data firm, told Xinhua.


""This is especially the case given that there have been a number of past instances where the BoE has indicated that an interest rate hike was on the cards and then failed to deliver one,"" Archer added.


MORE RATE RISES SIGNALLED


The BoE signaled in a statement that this rate rise would be the first in a series of increases in the cost of borrowing.


Some economic indicators point to an economy where much of the slack has been taken up.


""With unemployment at a 42 year low, inflation running above target and growth just above its now, lower speed limit Kevin White Jersey , the time has come to ease our foot off the accelerator,"" said Mark Carney, BoE governor.


""Future increases in the bank rate would be at a gradual pace and to a limited extent,"" he added.


The CPI rate for September, the last available data Cody Whitehair Jersey , is 3 percent, a rate driven up after Brexit referendum last June. The MPC sets monetary policy in order to meet the 2 percent inflation target.


The depreciation of sterling has increased the cost of imports and also raw materials for manufacturers and has fueled the spike in inflation.


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