Bank of England Holds Rates but Signals Rate Hike Cycle Ahead as Energy Crisis Deepens

The Bank of England held interest rates at 3.75% for a sixth consecutive meeting today, but delivered a stark warning that rates could rise as early as November. The MPC voted six to three to hold, revealing deep divisions over how to handle the inflation surge driven by Middle East conflict and soaring energy prices, with inflation now at 3.1% and forecast to hit 4% by early next year.

Headwinds

• Geopolitical Energy Shock: The Iran war and Strait of...