Bank of England hikes interest rate for the first time since Iran war, warns inflation will near 5%
One policymaker voted to raise the bank's key interest rate to 4.25%.
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One policymaker voted to raise the bank's key interest rate to 4.25%.
It was driven by energy inflation, which surged above 20% in October.
The new chairman made clear he leans toward higher interest rates, but left himself options depending on how the data comes in.
Markets saw the decision as a hawkish pause and were last pricing in a 67% chance of a December rate hike.
Even though the interest-rate vote went as expected, there were a few surprises out of this week's Federal Open Market Committee meeting.
Treasury Secretary Scott Bessent joined CNBC for an interview on Oct. 28, 2026.
The CNBC Fed Survey shows that 93% of respondent expect a pause at the Federal Reserve meeting taking place this week.
Housing data deteriorated further in September, according to separate reports Tuesday.
U.K. inflation rose by a hotter-than-expected 3.5% in the 12 months to September, driven by the surging cost of motor fuels.