● BOE Raises Rates to 4%, First Hike in Three Years

The Bank of England lifted its Bank Rate 25 basis points to 4%, the first increase since August 2023, with eight of nine policymakers backing the move and one pushing for a 50 basis point hike instead. The Monetary Policy Committee warned that CPI inflation could reach near 5% by the middle of next year, well above its 2% target, as the Middle East conflict pushes Brent crude and natural gas prices above earlier projections. Governor Andrew Bailey said a peace process could still keep inflation from rising past that 5% level. $GBP