Interest rates on an upward curve at last

It was the day borrowers dreaded and savers have wanted for more than a decade. The Bank of England’s decision finally to increase interest rates has long been expected.

The 0.25% rise returns rates to the previous sustained low of 2009 to 2015 but the increases are not expected to stop there.

Further rises are inevitable as the country drags itself from the post-banking crisis economic malaise and households start to feel more certain about the future.

The Bank thinks inflation has peaked – or will soon do so – and sees signs of wage growth recovery continuing throughout 2019.

The interest rates rise will be hailed by many as a powerful symbol of a UK economy finally finding its feet again.

Were it not for the uncertainty of the country’s withdrawal from the European Union looming on the horizon, a certain buoyancy might be more evident in the business community.

As with most facets of British life, however, the Brexit negotiations will play a huge role in determining how fast the Bank of England can bring rates up.

It is unlikely this rise will make a dramatic impact on spending habits and there will be little effect on the high street.

Further increases, if they come, must be judged carefully to ensure any economic recovery is not damaged.