Could a rise in US interest rates hike the Bank of England base rate?

JPMorgan Chase CEO Jamie Dimon has warned US interest rates could rise due to inflation. But what impact could this have on the Bank of England’s decision-making?

US interest rates and their UK equivalents represented by an American flag next to a British one
US interest rates could rise to deal with an uptick in the country's inflation
(Image credit: Getty Images)

JPMorgan Chase CEO Jamie Dimon set pulses racing on Tuesday (9 April) when he told shareholders his bank was prepared for US interest rates to rise as high as 8%.

The bank boss said "persistent inflationary pressures" meant the Federal Reserve could hike its rate from the current range of 5.25% - 5.5% to a level not seen in more than 30 years. He also said his bank was prepared for a “very broad range” of interest rates, ranging from 2% to more than 8%. In the UK, the Bank of England’s base rate sits at a 16-year-high of 5.25%.

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Henry Sandercock has spent more than eight years as a journalist covering a wide variety of beats. Having studied for an MA in journalism at the University of Kent, he started his career in the garden of England as a reporter for local TV channel KMTV.

Henry then worked at the BBC for three years as a radio producer - mostly on BBC Radio 2 with Jeremy Vine, but also on major BBC Radio 4 programmes like The World at One, PM and Broadcasting House. Switching to print media, he covered fresh foods for respected magazine The Grocer for two years.

After moving to NationalWorld.com - a national news site run by the publisher of The Scotsman and Yorkshire Post - Henry began reporting on the cost of living crisis, becoming the title’s money editor in early 2023. He covered everything from the energy crisis to scams, and inflation. He also has bylines in MoneyWeek.