The Bank of England raised its main interest rate to 4%
The Bank of England raised its main interest rate by a quarter point to 4% from 3.75%, its first increase in more than three years, to address inflation stoked by the Iran war. The bank signaled further increases remain possible. External Monetary Policy Committee member Catherine Mann favored a larger, half-point increase to 4.25%.
More context
On Thursday, policymakers lifted the benchmark from 3.75% to 4%, ending a pause of more than three years as they sought to counter inflation stoked by the Iran war. The move was widely expected: markets had priced in a greater than 99% chance of a hike, according to LSEG data cited by CNBC. All nine members of the Monetary Policy Committee supported an increase, but Bloomberg reported an 8-1 split over its size. External member Catherine Mann favored a half-point rise to 4.25%. The bank left open further increases if the conflict escalates again, the Associated Press reported. The Wall Street Journal said the bank signaled it was unlikely to tighten as aggressively as investors expected. Bloomberg reported inflation was forecast to approach 5% next year.
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Reporting
- Bloomberg — Bank of England Unanimously Hikes Rates, Warns of 4.9% Inflation - Bloomberg
- Reuters — Bank of England raises rates for first time since 2023, says more may come
- CNBC — Bank of England hikes for the first time since the Iran war, lifting interest rate to 4%
- The Wall Street Journal — Bank of England Raises Rates for First Time Since Start of Iran War - WSJ
- Telegraph Herald (with Associated Press) — Bank of England raises main interest rate a quarter point to 4% as Iran war stokes inflation | Business | telegraphherald.com
- morningstar.com — Bank of England Raises Interest Rates to 4% in First Hike Since 2023
Verifier’s note
CNBC, the Wall Street Journal, Bloomberg, Reuters, and the AP story carried by Telegraph Herald report that the Bank of England raised its rate to 4% on November 5. Morningstar’s headline also states the claim, while AP’s own result is only a pre-decision preview.