Bank of England Raises Rate to 4% as Bailey Signals More Hikes

The Bank of England raised its interest rate by 25 basis points to 4%, matching market expectations and adding a global monetary-policy development for readers tracking crypto and broader markets.

The increase was the Bank’s first since Aug. 2023. A 25-basis-point move equals one-quarter of a percentage point, and the rate now stands at 4%. The decision marks a return to increases after more than three years, while delivering the size of move markets expected.

Bank of England Gov. Bailey said the increase is unlikely to be the last unless the Iran war is resolved. His comment leaves open the possibility of additional hikes if the conflict remains unresolved. He tied the prospect of further increases to that condition, rather than describing another hike as certain.

For US readers, the decision adds a British policy signal to global rates developments followed by crypto and broader markets. The rate level, the first increase since Aug. 2023 and Bailey’s warning are the key developments in the decision.