The Bank of England has raised interest rates to 4% — the first increase since August 2023, up from 3.75%.
At its meeting ending on 4 November 2026, the Bank’s Monetary Policy Committee (MPC) voted by a majority of 8–1 to increase Bank Rate by 0.25 percentage points, to 4%. One member voted to increase Bank Rate by 0.5 percentage points, to 4.25%.
UK CPI inflation increased to 3.5% in September. It is now expected to rise to around 5% by the middle of next year. The Bank pointed to the conflict in the Middle East, now in its ninth month, and said global energy prices have continued to rise from an already elevated level.
The decision will affect millions of borrowers, including Londoners on variable-rate mortgages, while savers may see better returns on their deposits. The Bank will publish its full reasoning in the November Monetary Policy Report.
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