Bank of England raises rates for first time since 2023, says more may come

The Bank of England lifted its policy rate to 4% from 3.75% on Thursday, with its Monetary Policy Committee voting 8-1 in favour, The Express Tribune reported. The increase is the first in more than three years, and the bank said another move could be needed if the US-Iran conflict persists.

The BoE expects inflation to average 4.8% in the second quarter of next year, while its central outlook has growth at 1.6% this year and 1.3% next year. Governor Andrew Bailey said energy-related price pressures remain in the pipeline, though the bank cautioned that further increases are not certain. Its forecast sees inflation returning to 2% in the third quarter of 2028.