Bank of England raises its main interest rate to 4% as the Iran war stokes inflation

Summary

The Bank of England raised its main interest rate a quarter point to 4%, the first increase in more than three years, in an effort to tackle an inflation shock stoked by the Iran war, The Philadelphia Inquirer and ABC News reported on Thursday 5 November. The central bank said that inflation would climb to about 5 percent next year, far above its target, because of higher energy prices driven by the war in Iran, The NY Times reported, Bloomberg writing that policymakers voted unanimously and signaled another hike is on the cards, traders adding to bets for another hike next month. Bloomberg then reported that the Bank sees a case for another rate hike if the Iran war does not end, Governor Andrew Bailey saying at a news conference in London: 'I'm not going to sign up to the two-and-done point'.

Latest: The Bank of England raised its main interest rate a quarter point to 4%, the first increase in more than three years, to tackle an inflation shock stoked by the Iran war, The Philadelphia Inquirer and ABC News reported, The NY Times writing that the central bank said inflation would climb to about 5 percent next year and Bloomberg that policymakers voted unanimously.

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