Bank of England Raises Rate to 4% in First Hike Since August 2023

The Bank of England raised its policy rate by 25 basis points to 4% on Nov. 5, its first increase since August 2023, adding a fresh tightening signal to the global policy backdrop for crypto and risk markets.

The 25-basis-point step equals a quarter of a percentage point and brought the benchmark to 4%. The increase was in line with market expectations, making the policy move itself the main new signal in the announcement.

The rise was the Bank’s first since August 2023, a gap of more than three years. In that respect, Nov. 5 marks a change in direction for the Bank’s rate path, with borrowing costs moving higher after an extended pause.

For crypto and other risk-market readers in the United States, the decision adds a new tightening signal from a major economy outside the country. It puts the Bank’s 25-basis-point increase and 4% rate into the global policy picture that forms the story’s main context.