- The Bank of England has increased interest rates from 3.75 per cent to 4 per cent, marking the central bank's first rate rise in more than three years.
- All nine members of the Monetary Policy Committee voted for a hike, citing rising UK inflation driven by energy supply disruptions from the conflict in Iran.
- Bank Governor Andrew Bailey warned that borrowing costs are likely to rise further unless the conflict in the Middle East is resolved.
- UK Consumer Price Index inflation is projected to accelerate from 3.5 per cent in September to a peak of around 5 per cent in the second quarter of 2027.
- The rate increase will raise monthly costs for tracker mortgage holders, alongside an expected 25 per cent jump in Ofgem's energy price cap in January.
IN FULL
