# Bank of England hikes interest rates, warns inflation will near 5%

> The Bank of England raised its key interest rate by 25 basis points to 4%, its first hike since August 2023. The Monetary Policy Committee voted 8-1, with one member preferring a 50 basis point increase. Policymakers said UK inflation is expected to reach about 5% by mid-2027, citing the impact of the US-Iran war on energy prices.

- Date: 2026-11-05 · published 2026-11-05T21:08:49.444Z
- Category: macro · region UK · magnitude medium
- Page: https://feedsoft.ai/events/82416-bank-of-england-hikes-interest-rates-warns-inflation-will-near-5
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

Tighter UK monetary policy supports sterling and raises borrowing costs for feed producers and livestock operators, while the energy-driven inflation outlook keeps input costs elevated. The direct effect on feed grain prices is limited, but a firmer pound lowers the sterling cost of dollar-priced imports.

## Read by commodity

- GBPUSD: bullish ▲

## Sources

- cnbc.com: https://www.cnbc.com/2026/11/05/interest-rates-inflation-uk.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.