UK interest rates rise for first time in 10 years

The official bank rate has been lifted from 0.25% to 0.5%, the first increase since July 2007.

It is likely to rise twice more over the next three years, according to Bank of England governor Mark Carney.

The move reverses the cut in August of last year, which was made in the wake of the vote to leave the European Union.

Almost four million households face higher mortgage interest payments after the rise, but it should give savers a modest lift in their returns.

The main losers will be households with a variable rate mortgage.

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