United Kingdom: BoE Raises Rates for 1st Time Since 2023.

The Bank of England voted by a majority of 8-1 to raise the key bank rate by 25bps to 4% in November 2026, in line with expectations. It is the first increase in borrowing costs since August 2023, with one policymaker voting for a hike of 0.5 percentage points to 4.25%. The central bank noted that UK inflation is now expected to rise to around 5% by the middle of next year. It is then projected to fall as the impact of rising energy prices fades, and still restrictive monetary policy bears down on inflation. Policymakers added that monetary policy is not on a pre-set path and the Committee will continue to assess the evidence at each meeting and will adjust Bank Rate as necessary to ensure CPI inflation returns to the 2% target in the medium term.