Bank of England Rate Decision: Bank Rate Raised to 4% in an 8-1 Vote, CPI Seen Peaking Near 5%

Key takeaways The Bank of England raised Bank Rate by 25 basis points to 4% on 5 November in an 8-1 vote, with Catherine Mann favoring a half-point move. Staff projections lift the CPI peak to roughly 5% in 2027 Q2, driven by an energy shock that has pushed Brent up 38% and UK gas up 81% versus the July report. Two-year mortgage rates had already risen nearly 50 basis points since early September, and the market median path points to 4.25% by February. The next Bank Rate decision is 17 December, and the energy strip plus wage pass-through will decide whether 4% is the peak or another step. The Bank of England raised Bank Rate by 25 basis points to 4% on 5 November in an 8-1 vote, and its sta…