Key facts
- The Bank of England raised Bank Rate by 0.25 percentage points to 4% on November 5, 2026.
- The Monetary Policy Committee voted 8-1, with Catherine Mann seeking a 0.5 percentage point rise to 4.25%.
- The Bank said UK CPI inflation was 3.5% in September and is expected to reach around 5% by mid-2027.
- The Bank attributed the inflation outlook to higher global energy prices during the Middle East conflict, now in its ninth month.
- The Bank said inflation is then projected to fall as the effect of energy prices on 12-month rates fades.
The Bank of England raised Bank Rate to 4% from 3.75% on November 5, 2026, its first increase since August 2023. The Monetary Policy Committee voted 8-1 at its meeting ending November 4, 2026, the Bank said. Catherine Mann dissented, voting for a 0.5 percentage point increase to 4.25%.
The Bank said UK CPI inflation rose to 3.5% in September and is expected to rise to around 5% by the middle of next year. It attributed the outlook to higher global energy prices during the Middle East conflict, now in its ninth month, and said inflation is then projected to fall as the effect of energy prices on 12-month rates fades and restrictive monetary policy bears down on inflation.
The decision was widely expected. The Guardian reported that before the conflict began in February, the Bank's nine-member committee had been expected to cut rates in 2026, and that higher rates could affect more than 2 million mortgage borrowers due to refinance fixed-rate deals over the next year.