Bank of England lifts base rate to 4% amid inflation pressures
The Bank of England lifted its policy rate by 25 basis points to 4% and released its Monetary Policy Report, with Governor Andrew Bailey warning that additional hikes could be needed if geopolitical tensions persist. The bank said the move was driven by higher oil prices linked to the Iran conflict and rising energy costs, and projected inflation could near 5% by mid-2027. Analysts had expected the BoE to raise rates to 4%, the first increase since 2023, linking the anticipated move to rising energy costs and broader inflation pressures.