# The Bank of England hikes into an energy shock as Schnabel argues for reversible tools

> The Bank of England raised its policy rate to 4% on November 5 in an 8-1 vote, citing inflation pressures and stronger-than-expected activity. Its minutes say energy effects accounted for about one percentage point of September inflation and inflation could rise to around 5% by mid-2027. ECB board member Isabel Schnabel advocated flexible, reversible policy tools, while Sweden’s Riksbank announced plans to reduce currency risk on its balance sheet.

- Date: 2026-11-07 · published 2026-11-08T03:10:03.982Z
- Category: macro · region Europe · magnitude low
- Page: https://feedsoft.ai/events/86933-the-bank-of-england-hikes-into-an-energy-shock-as-schnabel-argues-for
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

Higher rates can weigh on economic activity and energy demand, but the article reports no direct change to feed or agricultural commodity supply. The energy shock is an inflation driver, while the rate decision itself has no clearly stated commodity price implication.

## Sources

- ratebrief.org: https://ratebrief.org/news/analysis/energy-shock-splits-central-banks-boe-hikes-schnabel-lessons-riksbank-balance-sheet/

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