Bank of England raises policy rate by 0.25 percentage points to 4%
The Bank of England announced a 0.25-percentage-point increase in its policy rate to 4%, its first rise since August 2023. The bank warned of upside risks to energy prices and potential inflation pressures amid turmoil in the Middle East. Governor Bailey said the move should not be seen as the start of a prolonged rate-hiking cycle, but was unlikely to be the last increase unless the Middle East conflict is resolved.