The Bank of England announces that interest rates will increase to 0.5%, the first rise in a decade

The Bank of England has raised interest rates for the first time in a decade, marking a shift in economic policy. The decision comes amid a strong labor market and moderate economic growth. However, the move has sparked debate, with some questioning its timing. The Bank expects two more rate hikes in the coming years, contingent on economic performance and Brexit outcomes. The impact of these changes will gradually affect the economy, signaling a return to normalcy.

What are the expected future actions regarding interest rates mentioned in the text?

What factors are influencing the medium-term prosperity of the UK economy?