Bank of England raises rates to 4% as it forecasts inflation near 5% next year

The Bank of England raised its benchmark interest rate by 25 basis points to 4% on Nov. 5 as a prolonged energy shock increased its inflation concerns. The move highlights a potential source of pressure on Bitcoin investors exposed to sterling borrowing. Bank of England decision Eight policymakers backed the increase, while Catherine Mann preferred a larger, 50-basis-point move to 4.25%. The Bank projected UK consumer-price inflation around 5% in the second quarter of 2027, following September's 3.5% reading. The median in the Bank's Market Participants Survey already expected a 4% rate in November, which limits the case for treating the announcement as a fresh market shock. The decision came despite limited evidence so far that the energy shock was spreading into broader wage and price-setting.

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