{
  "id": 18253266,
  "title": "Bank of England set to hike interest rates to tackle higher inflation caused by Iran war",
  "url": "https://urgent.news/2026/11/05/bank-of-england-set-to-hike-interest-rates-to-tackle-higher-inflation",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-05T05:12:28.000Z",
  "source": {
    "name": "Winnipeg Free Press",
    "slug": "winnipeg-free-press",
    "url": "https://www.winnipegfreepress.com/business/2026/11/05/bank-of-england-set-to-hike-interest-rates-to-tackle-higher-inflation-caused-by-iran-war"
  },
  "original_language": "en",
  "account": "LONDON (AP) — The Bank of England is anticipated to increase interest rates for the first time in more than three years on Thursday, aiming to combat the inflation surge triggered by the Iran war. This marks the highest rate since August 2023.\n\nEconomists predict that inflation will continue to rise throughout the coming months, prompting nine members of the Monetary Policy Committee to increase the bank's key rate from 3.75% to 4%. The decision to raise rates comes after inflation hit an 11-month high of 3.5% in September, surpassing their target of 2%.\n\nThe primary driver behind the spike in inflation this year has been the sharp increase in fuel costs due to the Iran war and the subsequent disruptions in the Strait of Hormuz, which have strained global oil and gas supplies. Ellie Henderson, an economist at Investec, expressed the committee members' impatience with the recent rise in inflation, stating that a prolonged period of elevated energy prices could turn a temporary price shock into a permanent issue.\n\nThe forthcoming rate increase will be accompanied by the bank's quarterly economic forecasts, specifically those related to inflation and growth. While higher interest rates temper the economy by raising borrowing costs, which in turn reduces spending and inflation, they can also negatively impact growth. Other major central banks, such as the U.S. Federal Reserve and the European Central Bank, have also raised interest rates recently in response to escalating prices.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "Bangkok Post Business",
        "title": "Bank of England poised to raise rate as inflation jumps",
        "url": "https://urgent.news/2026/11/05/bank-of-england-poised-to-raise-rate-as-inflation-jumps",
        "published": "2026-11-05T02:45:00.000Z"
      },
      {
        "outlet": "Free Malaysia Today",
        "title": "Bank of England set to raise rate as inflation jumps",
        "url": "https://urgent.news/2026/11/05/bank-of-england-set-to-raise-rate-as-inflation-jumps",
        "published": "2026-11-05T02:58:47.000Z"
      },
      {
        "outlet": "City AM",
        "title": "City searching for signals as Bank of England set to hike interest rates",
        "url": "https://urgent.news/2026/11/05/city-searching-for-signals-as-bank-of-england-set-to-hike-interest",
        "published": "2026-11-05T04:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}