Bank of England raises interest rate as inflation outlook worsens

The Bank of England has raised its base rate from 3.75% to 4%, its first increase in more than three years.

The Bank of England raised its rate. It rose from 3.75% to 4%.

This was the first rise in over three years. The Bank expects UK inflation to reach about 5% in 2027.

Energy and fuel costs may rise. The conflict in the Middle East affects these costs.

Higher rates make borrowing more costly. The Bank wants to control price rises.

Andrew Bailey leads the Bank. He said another rise may be needed.

This may happen if the conflict continues. He said more rises are not certain.

Catherine Mann wanted a bigger rise. She wanted a rise of 0.5 percentage points.

The Bank expects energy bills to rise. The average yearly bill may reach about £2,150 in January.

Section: Business

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