{
  "id": 18308980,
  "title": "UK hikes rates with eye on Trump’s next Middle East move",
  "url": "https://urgent.news/2026/11/05/uk-hikes-rates-with-eye-on-trumps-next-middle-east-move",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-05T12:42:11.000Z",
  "source": {
    "name": "Politico EU",
    "slug": "politico-eu",
    "url": "https://www.politico.eu/article/uk-hikes-rates-with-eye-on-us-donald-trumps-next-middle-east-move-bank-of-england-andrew-bailey/"
  },
  "original_language": "en",
  "account": "The U.K. Bank of England has increased its interest rates to 4% from 3.75%, the first such hike since August 2023, in response to rising prices caused by the Iran war. This move was driven by higher-than-expected U.K. inflation of 3.5% in September, despite the economy growing better than expected. While the MPC initially voted to raise rates by 0.5 percentage points, Governor Andrew Bailey emphasized that the future of the U.K. economy is dependent on what the U.S. does in Iran. The Bank projects inflation could reach nearly 5% by the second quarter of 2027, with a greater spillover into wages and other prices. This decision comes as a week after Chancellor John Healey's first budget delivered, highlighting the struggles of British households and businesses facing higher energy costs. Although the decision may benefit the Burnham government by lowering borrowing costs, it will place additional strain on struggling households and businesses. The Bank also warned that even if oil prices fall, the energy price cap will likely rise in January, reaching £2,150 in the first quarter of 2027. Food prices may also increase by 4.75% by mid-2027. The Bank hopes that a peace deal in the Middle East could alleviate the cost-of-living issues, but the actions of the Trump administration remain unpredictable.",
  "summary": "Thursday's increase is unlikely to be the last unless Middle East conflict resolved, said Andrew Bailey.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Moneyweb",
        "title": "Trump’s trouncing gives Warsh more room for manoeuvre on rates",
        "url": "https://urgent.news/2026/11/05/trumps-trouncing-gives-warsh-more-room-for-manoeuvre-on-rates",
        "published": "2026-11-05T11:24:39.000Z"
      }
    ]
  },
  "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."
}