rki.news | Source: Xinhua
LONDON, Nov. 5 – The Bank of England (BoE) on Thursday raised its benchmark interest rate by 0.25 percentage points to 4 percent, marking its first increase in more than three years.
The Monetary Policy Committee voted 8-1 in favour of the increase, while one member supported a larger 0.5 percentage point rise to 4.25 percent.
The bank said conflict in the Middle East has disrupted transportation and energy supplies, driving up energy prices, household fuel costs and utility bills.
Inflation has risen to 3.5 percent and is expected to climb to around 5 percent by mid-2027 as higher energy costs affect other prices.
The BoE said the economy had proved more resilient than expected, but warned that stronger economic activity could increase the risk of higher energy prices spreading to other goods and services.
It said the rate increase was necessary to limit the wider impact of rising energy costs.
Bank of England Raises Interest Rate to Four Percent
