A worker walks past the Bank of England in the City of London on Wednesday. (Reuters photo)The Bank of England raised interest rates for the first time in more than 10 years on Thursday and said it expected only "very gradual" further increases over the next three years. However, sterling fell around a cent against the US dollar and government bond yields dropped by 5 basis points as markets homed in on the BoE's cautious approach to future rate rises. "The MPC now judges it appropriate to tighten modestly the stance of monetary policy in order to return inflation sustainably to target," the BoE said in a statement. At its previous meeting in September, the Monetary Policy Committee had voted 7-2 in favour of keeping rates on hold.

Source: Bangkok Post November 02, 2017 12:43 UTC