SKN | Bank of England Raises Interest Rates to 4% as Markets Anticipate Further Tightening
Bonds & Foreign Exchange Bank of England Delivers First Rate Increase Since 2023 The Bank of England raised interest rates for the first time in more than three years on Thursday, increasing the policy rate to 4% from 3.75%. The decision reflected growing concern that higher energy costs could feed into broader inflation, particularly if the US-Iran conflict continues. The Monetary Policy Committee voted 8-1 in favour of the increase. The dissent came from a policymaker who wanted a larger hike, rather than one who preferred to leave rates unchanged. This differed from expectations in a Reuters poll and contributed to the perception that the decision was more hawkish than anticipated. The central bank also warned that at least one further increase could be […]
