Wire reporting: (AP, via Local 10)

The Bank of England raised Bank Rate by 0.25 percentage points to 4% on Thursday, the first increase in more than three years^4,5.

The Monetary Policy Committee voted 8-1 at a meeting ending 4 November, with one member preferring a rise to 4.25%⁴.

The bank said UK CPI inflation rose to 3.5% in September and is expected to reach around 5% by the middle of next year, then ease as energy-price effects fade and policy remains restrictive⁴.

It tied the outlook to a ninth month of conflict in the Middle East and higher global energy prices, and said pipeline inflation pressure was now enough to warrant a rise even though knock-on effects on other prices and wages remain limited⁴.

Governor Andrew Bailey said the decision "shouldn't be seen as the first in an inevitably long sequence of hikes," the BBC reported, while warning another increase was likely unless the conflict is resolved⁵.

Chancellor John Healey said the Iran conflict was reaching into household and business costs, and pointed to Budget steps including a £100 energy payment for 20 million households, an electricity-bill tax cut extension and a fuel-duty freeze⁵.

The Associated Press said the last increase was in August 2023 and that U.K. rates had been falling from 5.25% until fighting involving Iran began on Feb. 28¹.

AP also said other major central banks have raised rates recently and that energy prices had fallen after U.S. midterm results, which could limit further hikes if the drop lasts¹.

The committee said policy is not on a pre-set path and that the next decision is due 17 December 2026⁴.