Bank of England lifts benchmark rate to 4% in 8-1 vote

The Bank of England's Monetary Policy Committee raised its benchmark interest rate by a quarter point to 4% on November 5, with one of the nine members pushing instead for a half-point move because of continuing inflation pressure, Economies.com reported.

Sterling held near $1.3473 against the dollar, roughly flat, after a six-day advance, while the euro eased 0.05% to £0.8348. The pound's trade-weighted index hit 86.37, its strongest reading since the 2016 Brexit referendum.

The central bank said more increases may be required should high energy costs keep passing through to consumer prices and pay. Rate markets moved to price in roughly three-quarters of a percentage point of additional tightening by the close of 2027, according to the report, though economists disagree over how much the British economy can absorb.

The dollar stayed weak after Democratic wins in the congressional elections, with Treasury yields and oil prices also falling. Traders were awaiting the US employment report due November 6 for direction on Federal Reserve policy. Chart resistance for sterling sits near $1.3505, the November 4 high, with support around $1.3459.

This story was first reported by Economies.com.