The Bank of England raised Bank Rate by 0.25 percentage points to 4%, with eight members backing that move and Catherine Mann preferring 4.25%. It expects inflation to reach around 5% by mid-2027. Stronger activity and prolonged energy costs prompted the increase, but further decisions depend on how those costs spread into wages and other prices.
Related currencies / asset groups: GBP
The Bank judges prolonged energy inflation and stronger activity sufficient to warrant tighter policy.
Eight MPC members backed a 0.25 percentage point rise to 4%; Catherine Mann preferred a 0.5 percentage point rise to 4.25%.
Bank of EnglandThe Bank expects inflation to reach around 5% by mid-2027, after 3.5% in September.
Bank of EnglandThe Bank says future policy depends on the evidence on energy costs, underlying pay, pricing and spare capacity.
Bank of EnglandLimitation: Evidence of spillovers into other prices and wages remains limited, and weaker demand could restrain pricing power.
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