Bank of England Lifts Rates to 4%, Signals 1 More Hike as Inflation Nears 5%
Updated
Updated · bbc.co.uk · Nov 5
Bank of England Lifts Rates to 4%, Signals 1 More Hike as Inflation Nears 5%
3 articles · Updated · bbc.co.uk · Nov 5
Summary
Nine policymakers split after the move to 4%: three signaled multiple further rises, one backed a larger 4.25% increase, and Governor Andrew Bailey was among three pointing to just one more hike.
Inflation is projected to run just under 5% next spring as a typical household energy bill jumps 27% in January to £2,150, prompting the Bank to act against entrenched price expectations.
UK growth has held up better than expected—0.6% and 0.5% in the first two quarters, with 0.7% forecast for July-September—while unemployment has stabilized and sterling has reached its strongest level since the Brexit referendum.
That stronger economy gave the Bank room to move, but officials still tied the likely February increase to the Iran war, whose 9-month impact on energy prices remains the main source of uncertainty.