July 5 is the 10 year anniversary of the last Bank of England rate hike
Ten years ago today the Bank of England raised interest rates to 5.75% in what was the fifth hike in less than a year.
At the time, the hike wasn't a surprise as 56 of 70 analysts polled by Reuters forecast the move.
"Although pay pressures remain muted, the margin of spare capacity in businesses appears limited and most indicators of pricing pressure remain elevated," the statement said. "The committee judged that, relative to the 2% target, the balance of risks to the outlook for inflation in the medium term continued to lie to the upside."
They were wrong. Inflation risks were to the downside and by November the BOE was cutting rates as worries about US housing intensified. The first few cuts were gradual but by the following September the central bank was in panic mode and rates were cut to 0.50%.
At the time of the hike, gilts were yielding 5.5% as the yield curve had already inverted.
Read what the BBC had to say at the time of the hike.
