Daniel Mahoney, Head of Economic Research at the Centre for Policy Studies, said:
"Today’s rate increase is a welcome step in addressing the problems associated with an unprecedented period of rock-bottom interest rates. Years of ultra-loose monetary policy have held back UK productivity by encouraging a misallocation of resources, sustaining zombie firms and helping inflate house prices beyond the reach of first-time buyers.
“Of course, this is just a small step. It is important that monetary policy is normalised at the earliest opportunity, not least because this very modest increase in rates still leaves little room for the Bank of England to respond to any future economic shocks.”