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

The Bank of England raised its benchmark rate to 4% while the Federal Reserve held steady, even after US inflation came in hotter than expected. The divergence reflects Britain’s heavier reliance on imported gas, which keeps UK inflation pressure elevated. The Fed’s pause suggests it is weighing slower growth and prior tightening against sticky price data. Markets will watch upcoming US and UK inflation prints and central bank guidance for whether the policy gap widens further.