{
  "id": 19420666,
  "title": "Bank of England urged to hike interest rates from four to five per cent",
  "url": "https://urgent.news/2026/11/11/bank-of-england-urged-to-hike-interest-rates-from-four-to-five-per",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-11T00:01:00.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/bank-of-england-urged-to-hike-interest-rates-from-four-to-five-per-cent/"
  },
  "original_language": "en",
  "account": "The National Institute of Economic and Social Research (Niesr) has called for the Bank of England to raise interest rates from four to five per cent to combat persistent inflation. Their autumn report suggests inflation may not return to the Bank's two per cent target until 2030 due to factors such as the Iran war, elevated borrowing costs, and potential £30bn spending challenges for government. The think tank warns that only one more rate hike would bring inflation back to the target in four years, as second round effects could lead to wage inflation and economic instability. Niesr emphasizes the importance of considering these second round effects, noting that inflation could become entrenched in the economy due to people's expectations and high unemployment rates. The Bank's Monetary Policy Committee has previously cautioned that higher unemployment and fewer job vacancies could weaken workers' ability to demand pay increases. The Bank currently projects inflation will reach 4.9 per cent by July next year, but Niesr's analysts argue that this assessment is behind the curve. They warn that a 4.75 per cent interest rate hike would shave off 0.4 percentage points from GDP growth in 2028 and 2029, potentially slowing economic expansion to just 0.5 per cent. Such a scenario could also make Chancellor John Healey's fiscal targets more difficult to meet, possibly resulting in a £30bn shortfall.",
  "summary": "The Bank of England has been urged to hike interest rates to five per cent after new analysis suggested inflation may not return to the two per cent target until 2030. The National Institute of Economic and Social Research (Niesr) said in its autumn report that the Bank should dramatically hike interest rates following a [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "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."
}