Bank of England raises Bank Rate to 4% in first hike since 2023

Key facts

• The Bank of England raised the Bank Rate by a quarter percentage point to 4% on November 5, 2026.
• The Monetary Policy Committee cited concerns the Iran War could lead to a lengthy bout of inflation.
• The Bank Rate had been held at 3.75% for almost a year before the increase.
• The 510,000 UK mortgage-holders with tracker loans will see interest costs rise immediately.

The Bank of England raised its Bank Rate by a quarter percentage point to 4% on November 5, 2026, the first increase since August 2023. The Monetary Policy Committee cited concerns that the Iran War could lead to a lengthy bout of inflation.

The Bank Rate had been set at 3.75% for almost a year after a drawn-out series of reductions from a high of 5.25% three years earlier. The increase will immediately affect the 510,000 mortgage-holders in the UK who use a tracker to set their interest rate, while those on a variable mortgage will likely also see an impact.

When the Bank Rate increases, interest on those loans rises with it, meaning homeowners and businesses pay more. Savers might see higher interest rates offered by banks.