{
  "id": 8027801,
  "title": "Bank of England holds rate, warns of hike if Iran war persists",
  "url": "https://urgent.news/2026/09/17/bank-of-england-holds-rate-warns-of-hike-if-iran-war-persists-8027801",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-17T12:08:55.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today-freemalays",
    "url": "https://www.freemalaysiatoday.com/category/business/2026/09/17/bank-of-england-holds-rate-warns-of-hike-if-iran-war-persists"
  },
  "original_language": "en",
  "account": "On Thursday, the Bank of England maintained its benchmark interest rate at 3.75%, while warning that a potential hike could be necessary due to rising energy costs stemming from the ongoing war in the Middle East. This decision followed the Federal Reserve's decision to raise US interest rates for the first time since 2023, aimed at combating surging inflation.\n\nBank of England governor Andrew Bailey stated that while higher energy costs have had a limited impact on price and wage settings in the UK so far, the prolonged volatility is likely to increase inflation in the future. If this trend continues, Bailey emphasized, the central bank may be compelled to raise the benchmark rate.\n\nThe Bank of Japan is expected to raise borrowing costs on Friday amid its battle against inflation, and the European Central Bank recently increased interest rates for the second time this year. Out of the nine members of the BoE's monetary policy committee, three voted to increase the UK rate by 0.25 percentage points to 4%, while Bailey joined the other five in calling for no change for the sixth consecutive time.\n\nInflation in the UK reached 3.1% in August, significantly above the central bank's 2% target. The BoE anticipates that price pressures will intensify, projecting inflation to rise to 4% by the first quarter of 2027. The central bank warned that if the Middle East conflict persists and the risk of secondary effects increases, policy tightening may become necessary.\n\nThese concerns have driven global government bond yields to record highs. Prime Minister Andy Burnham acknowledged the need to make difficult decisions regarding the economy as the government's budget update approaches on October 28. Burnham and Finance Minister John Healey face pressure to address the cost of living crisis while adhering to fiscal responsibility.",
  "summary": "The widely expected decision comes as surging energy prices have led central banks around the world to shift in favour of tightening monetary policy.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 6,
    "also_reported_by": [
      {
        "outlet": "Guardian Business",
        "title": "Bank of England holds interest rates at 3.75% but warns war could force future rises",
        "url": "https://urgent.news/2026/09/17/bank-of-england-holds-interest-rates-at-3-75-but-warns-war-could",
        "published": "2026-09-17T12:04:07.000Z"
      },
      {
        "outlet": "Free Malaysia Today",
        "title": "Bank of England holds rate, warns of hike if Iran war persists",
        "url": "https://urgent.news/2026/09/17/bank-of-england-holds-rate-warns-of-hike-if-iran-war-persists",
        "published": "2026-09-17T12:08:55.000Z"
      },
      {
        "outlet": "FXStreet",
        "title": "Bank of England: November hike risk rises – Rabobank",
        "url": "https://urgent.news/2026/09/17/bank-of-england-november-hike-risk-rises-rabobank",
        "published": "2026-09-17T13:51:17.000Z"
      },
      {
        "outlet": "City AM",
        "title": "Borrowing costs fall after Bank of England ‘surprises’ markets with bond sale change",
        "url": "https://urgent.news/2026/09/17/borrowing-costs-fall-after-bank-of-england-surprises-markets-with",
        "published": "2026-09-17T15:14:38.000Z"
      },
      {
        "outlet": "Hellenic Shipping News",
        "title": "Bank of England floats a November rate hike if energy prices don’t come down",
        "url": "https://urgent.news/2026/09/17/bank-of-england-floats-a-november-rate-hike-if-energy-prices-dont",
        "published": "2026-09-17T17:00:55.000Z"
      }
    ]
  },
  "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."
}