United Kingdom · Regional Lead · 2026-11-05
Bank of England raises its policy rate as it weighs energy spillovers
The November 5 announcement puts Bank Rate at 4 percent after an 8–1 vote.
The Bank of England announced Thursday that its Monetary Policy Committee had lifted Bank Rate by a quarter percentage point to 4 percent. Eight members backed that move at the meeting ending November 4; the other member favored a half-point rise to 4.25 percent.
The committee said higher energy costs were already reaching businesses and households, but the evidence that they had spread significantly to other prices and wages remained limited. It judged the risk of that spread sufficient to warrant tightening, with recent economic activity stronger than expected.
UK consumer inflation reached 3.5 percent in September. The Bank now expects it to be around 5 percent by mid-2027 before easing. That figure is a forecast, and the Bank’s medium-term target remains 2 percent.
More News
World · 2026-11-05
Energy prices widened Europe’s September factory-price rise
Eurostat’s November 5 release shows a 2.5 percent monthly rise in euro-area producer prices, against 0.1 percent excluding energy.
September industrial prices rose far more quickly when energy was included in the calculation, according to estimates released Thursday by Eurostat. Euro-area energy producer prices rose 7.8 percent from August, while the index for industry excluding energy advanced only 0.1 percent.
Across the European Union, which includes countries outside the euro area, the corresponding figures were 7.7 percent for energy and 0.2 percent for industry excluding energy. The overall EU industrial index increased 2.6 percent for the month, compared with 2.5 percent in the euro area.
Read articleBusiness · 2026-11-05
Bank of England raises its policy rate as it weighs energy spillovers
The November 5 announcement puts Bank Rate at 4 percent after an 8–1 vote.
The Bank of England announced Thursday that its Monetary Policy Committee had lifted Bank Rate by a quarter percentage point to 4 percent. Eight members backed that move at the meeting ending November 4; the other member favored a half-point rise to 4.25 percent.
The committee said higher energy costs were already reaching businesses and households, but the evidence that they had spread significantly to other prices and wages remained limited. It judged the risk of that spread sufficient to warrant tightening, with recent economic activity stronger than expected.
Read article