Bank of England lifts Bank Rate to 4% in first hike since 2023

What the committee did

The Monetary Policy Committee lifted the policy rate to 4% from 3.75% in an 8-1 decision, with Catherine Mann preferring 4.25%. As the minutes put it, "The degree of inflationary pressure in the pipeline is now sufficient to warrant an increase in Bank Rate," and the committee will "assess the evidence" before deciding on additional increases in the coming months.

Why the move happened

The move had largely been expected, as higher energy costs stemming from the US-Iran war lifted inflation beyond the 2% target. In the year up to September, consumer prices rose 3.5%.

Forecasts and records released

The projections released with the decision indicate that, in the second quarter of 2027, average price growth could be 4.9%.

When policy shifts remind markets of uncertainty, investors seek smarter tools. We're hosting our first ever investor livestream on 11/17 to show you how to use ChatGPT and Claude to invest like a pro, hosted by Briefs Finance CEO Jaspreet Singh. Save your seat.

The committee on next steps

The minutes say the committee will "assess the evidence" before committing to more tightening in the months ahead. The bottom line: the path of future hikes is open, and the bank says it will move as the data do.

Learning how new technologies can sharpen decision making helps investors stay confident. On 11/17, our CEO Jaspreet Singh goes live for our first ever investor livestream on how to use ChatGPT and Claude to invest like a pro. Register to join him.