Bank of England raises its policy rate to 4% in an 8–1 vote
Most Monetary Policy Committee members backed a quarter-point increase at their November meeting.
The Bank of England raised Bank Rate by a quarter of a percentage point to 4% at its meeting ending November 4. The Monetary Policy Committee voted 8–1 for the increase, according to minutes published the next day. The dissenting member favoured a larger half-point rise to 4.25%.
Policymakers discussed the risk that a rise in costs could have lasting effects on inflation if it changes how businesses set prices and how workers negotiate wages. The minutes also describe a competing concern that weak economic activity could limit price pressures. The bank sets rates to bring inflation back to its 2% target over time.
The 4% figure is the central bank’s policy rate. Its movement can influence what commercial banks charge for borrowing and pay on savings, with the timing and size of changes varying by product. The minutes record the November decision and the considerations members expect to weigh at future meetings.