For the first time in ten years, the Bank of England has voted to increase interest rates. The base rate has increased to 0.5 percent from a record low of 0.25 percent. With inflation well above its 2 percent target, the Bank said that it could no longer justify keeping rates static while Brexit has a “noticeable impact” on the outlook for the economy.

In a statement, the Bank said that uncertainties associated with Brexit means that domestic activity has slowed despite significant global growth and it is desired to curb high inflation which is currently squeezing UK households and businesses. Sterling fell against the Euro and US dollar in response to the announcements and wasn’t helped by the fact that the Bank didn’t detail a specific timeframe for any future rises.