Bank of England hikes rates to 4% in first rise since 2023

Taking a hawkish stance, eight MPC members opted to increase rates, with Catherine Mann the sole member voting for a 50bps hike to 4.25%. The MPC said: "Inflation has risen to 3.5% and we expect it to rise even further to about 5% by mid-2027 as higher energy prices have their knock-on effects. "The economy has been more resilient and activity has been stronger than expected – this is good news, but it adds to the risk that higher energy prices affect other prices; so, we must act now to reduce their impact. "Raising Bank Rate should help limit how far higher energy costs feed into...