# A rate rise is the right decision, but stop blaming Iran

- URL: https://talkfuse.com/story/a-rate-rise-is-the-right-decision-but-stop-blaming-iran/
- Published: 2026-11-06T10:40:23+00:00
- Updated: 2026-11-06T11:42:36+00:00
- Original publisher: City AM (publisher lean: Right)
- Original article: https://www.cityam.com/a-rate-rise-is-the-right-decision-but-stop-blaming-iran/
- Topics: Business, Economy, Government, Middle East, Politics, UK, World

## Key points

- The Bank raised rates to 4% in a unanimous vote.
- It fears energy costs could feed wider inflation.
- Borrowers and businesses face higher costs.

## Summary

The Bank of England unanimously raised its base rate from 3.75% to 4%, citing persistent inflation risks. The article argues that the vote reflects concern that higher energy costs could spread into wages and prices, and says the government should address domestic cost pressures rather than blame the war in Iran.

Inflation rose from 3.1% in August to 3.5% in September, largely because of fuel costs. The Bank’s forecast suggests inflation could reach 5% by mid-2027, while the OBR expects a peak of 3.75% early next year. Mortgage borrowers and businesses face higher costs, while savers may earn more interest; markets expect as many as four further quarter-point rises by the end of 2027.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.