US Inflation Runs Hotter, So Why Did BoE Hike Rates and Not the Fed?

The Bank of England raised its main interest rate by a quarter point to 4% on Thursday, its first increase since 2023; eight of nine Monetary Policy Committee members backed it, while Catherine Mann sought a half-point rise. The move came a week after the Federal Reserve held its target range at 3.75% to 4%, following a September increase and an October decision to seek more information. US consumer prices rose 3.7% in the year to September against 3.5% in Britain, but the BoE projects UK inflation near 5% by mid-2027, or 6.2% if energy remains expensive. Governor Andrew Bailey wrote in the minutes that further increases could be justified without news softening inflationary risks.