[Step 2] UK raises base interest rate for the first time in 3 years... 0.25%p up to 4% per year

(London = Yonhap News) Correspondent Kim Ji-yeon = The Bank of England (BOE), the central bank of England, raised its base interest rate by 0.25 percentage points (p) to 4.00% per annum at the Monetary Policy Committee on the 5th (local time).

The UK's base interest rate increase is the first in three years and three months since it was raised by 0.25 percentage points to 5.25% in August 2023.

Eight out of nine members of the monetary policy committee were in favor of raising the interest rate by 0.25%p, and the remaining member expressed the opinion of raising the interest rate by 0.5%p to 4.25%. Market experts surveyed by Reuters previously predicted that the increase would be decided by a vote of 7 to 2.

The base interest rate of 5.25% per annum in August 2023 was the highest in 15 years.

The Bank of England has continued to maintain or reduce interest rates since then. The last cut was 0.25% point in December last year, and this year it was frozen six times in a row from January to September.

Since the Iran war began in February of this year, rising price pressures have continued. The consumer price index increase rate in September was 3.5%, significantly exceeding the bank's target of 2% and reaching the highest level in 11 months.