Economy / Other
Bank of England raises rate to 4% as energy costs threaten inflation
Eight policymakers backed a quarter-point increase; one sought a larger rise.
Status: source-checked.
The Bank of England raised its benchmark interest rate by a quarter of a percentage point to 4% on Thursday, saying higher energy costs had created enough inflation pressure to warrant tighter policy.
The Monetary Policy Committee voted 8-1 for the increase at its meeting ending Nov. 4. The dissenting member favored a larger half-point rise to 4.25%, according to minutes published Nov. 5.
The bank said British consumer price inflation reached 3.5% in September and projected it would rise to around 5% by the middle of 2027. That is a forecast, not an observed inflation reading.
Policymakers said evidence of energy costs spreading into other prices and wages remained limited, but stronger-than-expected activity added to the case for a modest increase.
The committee said future decisions would depend on incoming evidence and that monetary policy was not on a preset path.
What we know / what we don't
What we know
- The Bank of England raised its benchmark interest rate by a quarter of a percentage point to 4% on Thursday, saying higher energy costs had created enough inflation pressure to warrant tighter policy.
What we don't know
- Forecasts are uncertain; future policy or company outcomes are not established by this release.
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