Andrew Bailey

Stories

Bank of England raises rates to 4% as energy prices push inflation up

Says another rate rise is likely unless the Middle East conflict ends

The Bank of England raised its benchmark interest rate to 4% on 5 November, the first increase since August 2023. Eight of the nine Monetary Policy Committee members backed the quarter-point move; Catherine Mann wanted a half-point.

Updated 4 days ago

Bank of England cuts to 3.75%—one vote, two stories, and a fight over what “neutral” means

Money Moves

As of May 2026: Casting-vote rate cutter as the committee nears a contested “neutral” level

This cut had courtroom drama energy. The Bank of England dropped rates to 3.75%—but only because Governor Andrew Bailey switched his vote and made it 5–4. The immediate market read was hawkish-by-UK-standards: sterling rose and gilt yields ticked higher as traders pared back expectations for rapid 2026 easing.

Updated May 15

Notable Quotes

"Today's increase should not be seen as the first in an inevitable long sequence of hikes. That is not inevitable. But unless the conflict in the Middle East is resolved, neither does it seem likely to be the last increase."

from Bank of England raises rates to 4% as energy prices push inflation up · Updated 4 days ago

“With every cut we make, how much further we go becomes a closer call.” — Andrew Bailey

from Bank of England cuts to 3.75%—one vote, two stories, and a fight over what “neutral” means · Updated May 15