The Bank of England has increased its base interest rate from 3.75% to 4%, marking the central bank's first rate hike in more than three years.
The decision by the Monetary Policy Committee (MPC) comes a week after the budget and as the Iran war continues to drive up energy costs. According to the central bank, the policy shift is designed to counter rising inflation driven largely by this ongoing conflict, which continues to exert upward pressure on energy costs.
The widely expected adjustment represents the first time the Bank of England has raised rates since August 2023, signaling a renewed policy focus on cooling price pressures across the UK economy.
