Explainer
Is this the first of a long run of Bank of England rate rises?
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The Bank of England has lifted its rate to 4%, its first rise in more than three years. Eight of nine members voted for it, and Catherine Mann wanted a bigger half-point move.
4%
Governor Andrew Bailey was blunt: Today's increase shouldn't be seen as the first in an inevitable long sequence of hikes.
“Today's increase shouldn't be seen as the first in an inevitable long sequence of hikes.”
Inflation was 3.5% in September, and the Bank's central forecast has it climbing to 4.5% early next year, then 5% after that.
- 2026-093.5%
- Q1 20274.5%
- Q2 20275%
Traders now see 51 per cent odds of another rise in December. Bailey said that unless the conflict in the Middle East is resolved, this is unlikely to be the last rise.
51%
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The story
Bank of England raises rates to 4% and warns more hikes may followRead the article
Based on reports by
- The IndependentI hate to say it, but only Donald Trump can save Britain from more interest rate pain
- Financial Times NewsBank of England raises interest rates to 4% in bid to tame inflation
- Irish IndependentBank hikes interest rates to 4pc and warns more to come if Iran war continues
- The IndependentInterest rates hiked for first time in three years - but BoE cautious over next step
- stern.deBritish Central Bank reacts to high inflation and raises key interest rates
- LesEchos.frThe Bank of England raises its rates in turn, a first in more than three years