The Bank of England’s nine rate-setters on the Monetary Policy Committee voted 7 to 2 to raise the key interest rate to 0.50% from 0.25%. It was the first hike since 2007, before the global financial crisis shoved the UK into a vicious recession.
However, investor attention was primarily focused on the BoE’s caution towards subsequent moves, after the Central Bank commented that any further increase would be "gradual" and to a "limited extent."
In a press conference following the announcement, Governor Mark Carney said policymakers would re-evaluate the economic outlook once it had more clarity on the country’s relationship with the European Union post Brexit.
The Sterling tumbled by the most in five months against a basket of major currencies on Thursday, helping FTSE 100 futures rally almost 1.50% during the session.