INTEREST rates are to rise for the first time in more than a decade as the Bank of England makes moves to half inflation.

The bank’s Monetary Policy Committee voted to push interest up to 0.5 per cent, from 0.25 per cent, marking the first rise since July 2007.

Mike Cartwright of West & North Yorkshire Chamber of Commerce said: “The rise was being predicted by many observers and so does not come as a shock.

“However, as the first rise in 10 years, it does put a marker in the sand and we need to make note of the action.

“While the Brexit-related constraints on investment and labour supply referred to by the committee are real, there is still plenty to be positive about within our local business community.

“Our last survey results showed that confidence is still strong, with many firms looking for new markets and opportunities, and not simply waiting to see what happens with Brexit negotiations.”