Bank of England raises UK interest rates for first time since 2007

Threadneedle Street increases cost of borrowing from 0.25% to 0.5%, reversing emergency action after Brexit vote

Reaction to the interest rate rise

The Bank of England's 0.25% rate rise sent the pound tumbling on foreign exchanges as gloomy forecasts for growth appeared to rule out the prospect of steep increases in the cost of credit before 2020.

Related: What the interest rate rise will mean for you

Lenders have already bumped up the cost of fixed rate mortgages ahead of the Bank of England's decision to raise base rate from 0.25% to 0.5%, and mortgage borrowers on tracker and variable rates will see their monthly payments become more expensive in the coming days. "

Related: UK interest rates raised for first time in a decade - business live