Bank of England Hikes Rate for First Time in 3 Years

The Bank of England (BoE) indicated Thursday that the sharp decline in energy prices after the U.S. midterm elections — if sustained — could limit the prospect of further interest rate hikes in the coming months.

After raising its main interest rate for the first time in more than three years to 4% from 3.75%, the bank said the outlook for U.K. borrowing costs largely hinges on what happens with the Iran war.

"We’ve seen encouraging news in the past 48 hours," Bank Gov. Andrew Bailey said at a press briefing following the first interest rate hike since August 2023. "The best thing that can happen is to resolve the conflict in the Middle East; there’s no question about it."

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