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LONDON, Nov 5 (Reuters) - The Bank of England raised interest rates for the first time in over three years on Thursday and warned that at least one more increase was likely if the US-Iran conflict continues, as it started on a path that its main peers have already embarked on. British inflation is likely to reach around 5% in the middle of next year, the BoE said, more than double the central bank's target and a blow for new Prime Minister Andy Burnham who has sought to ease cost of living pressures. While there was little evidence so far of faster inflation outside sectors directly affected by higher energy costs, the BoE said the amount of inflation pressure coming down the road from months of high energy prices required a rate rise now.
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