Bailey says BOE may need another rate hike unless Iran conflict eases
TLT•Bank of England Governor Andrew Bailey said another rate increase may be needed if the Iran conflict continues to raise inflation risks through higher energy prices. The Monetary Policy Committee voted 8-1 to raise Bank Rate to 4.0% from 3.75%, and warned inflation may peak around 5% next year.
1. Rate hike warning
Andrew Bailey said another interest rate increase may be needed if the Iran conflict continues to fuel inflation risks through higher energy prices. He said recent falls in oil prices were encouraging, but the inflation outlook remained closely tied to developments in the conflict.
2. Bank raises rate
The Bank of England’s Monetary Policy Committee voted 8-1 to raise Bank Rate to 4.0% from 3.75%, its first increase since 2023. Policymakers warned inflation is likely to peak at around 5% next year.
