News · Macro & Markets
The Monetary Policy Committee voted 8–1 to lift rates by 25 basis points as UK inflation is projected to reach 5% by mid-2027.
Key point 1 of 3
01
The Bank of England lifted the Bank Rate by 25 basis points to 4%, with an 8–1 vote margin on Nov. 4.
Key point 2 of 3
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UK CPI inflation reached 3.5% in September and is projected by Bank staff to peak near 5% in Q2 2027.
Key point 3 of 3
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Brent crude and UK natural gas futures rose 38% and 81% respectively since July due to Middle East conflict disruptions.
Context
Protracted conflict in the Middle East has disrupted global commodity supplies, pushing Brent crude to $108 per barrel and driving up UK wholesale gas prices.
Why it matters
UK borrowers face higher debt-servicing costs across variable-rate loans and mortgages. For risk assets and institutional liquidity, sustained restrictive monetary policy among…
What to watch
The Monetary Policy Committee's next rate decision is scheduled for Dec. 17, alongside the evolution of front-month energy contracts and UK wage settlements leading into early…
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