The Bank answered Brexit is having a “noticeable impact on the economic outlook” and warned of more get ups to come.
Policymakers voted seven to two in favour of the quarter point turn out, which marks the first rates increase since July 2007.
The advance comes as the Bank looks to dampen Brexit-fuelled inflation, which it presages will now peak at around 3.2 per cent this autumn.
Look at Carney, the governor of the Bank, blamed Brexit for the move.
Objective Carney has blamed Brexit for the increase in interest rates
Mr Carney mentioned: “These are not normal times. Brexit will redefine the UK’s relationship with our largest switch and investment partner.”
The Bank said in a statement: “The decision to leave the European Junction is having a noticeable impact on the economic outlook.
“The overshoot of inflation fully the forecast predominantly reflects the effects on import prices of the referendum-related drop-off in sterling.
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“Uncertainties associated with Brexit are weighing on domestic pursuit, which has slowed even as global growth has risen significantly.
“And Brexit-related constraints on investment and laboriousness supply appear to be reinforcing the marked slowdown that has been increasingly patent in recent years in the rate at which the economy can grow without fabricating inflationary pressures.
“There remain considerable risks to the outlook, which embody the response of households, businesses and financial markets to developments related to the dispose of of EU withdrawal.”
The Bank of England has raised the interest rate in comeback to Brexit
Mr Carney said the move to hike rates was driven by the necessity to bring inflation down to target.
He said: “It’s not so much where inflation is now, but where it’s affluent that concerns us.”
He added: “In many respects the decision today is straightforward: with inflation elevated, slack disappearing and the economy growing at rates above its speed limit, inflation is unacceptable to return to the 2% target without some increase in interest estimates.”