Bank of England raises interest rates to 4% as energy prices push inflation higher
The Bank's first rate rise since 2023 was backed by all nine policymakers on 5 November, and one wanted a bigger increase. Staff expect inflation to reach about 5% by the middle of next year.
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The Bank of England raised Bank Rate, its main interest rate, by 0.25 percentage points to 4% on Thursday 5 November. It was the Bank's first increase since 2023 and came as the conflict in the Middle East, now in its ninth month, kept energy prices high.
How this story was sourced.
5 sources from 3 organisations, 3 of them official or primary documents.
Official and primary documents 3
The body that made the decision, the paper, or the organisation’s own release.
News organisations 2
Reports by other newsrooms. Where a story was carried by another outlet, both are named.
The sources as the story lists them
Sources
- Bank of England: Bank Rate increased to 4%, November 2026 Monetary Policy Summary and minutes
- Bank of England: Monetary Policy Report, November 2026
- Bank of England: Monetary Policy Summary and minutes, September 2026
- BBC (via Yahoo Finance): Bank of England raises interest rates to 4%, the first increase in more than three years
- Bloomberg: Bank of England unanimously hikes rates, warns of 4.9% inflation
The story so far. More on Central banks, UK economy and Inflation.
- Bank of Japan holds at 1.25% but says inflation has reached its 2% target One board member voted for a rise on 30 October, and most economists expect the Bank to raise rates in December.
- ECB holds rates as Lagarde says she will step down nine months early The European Central Bank kept its deposit rate at 2.5% on 29 October, the same day its president said she would leave on 7 February. A week later, euro zone inflation reached 4%.
- Fed holds rates at 3.75%–4% as two policymakers vote for a rise Governor Lisa Cook and Cleveland Fed President Beth Hammack wanted a quarter-point increase on 28 October. Figures published the next day showed the economy grew at a 3.4% annual rate in the third quarter.
- Healey's first Budget doubles the bank surcharge to fund £100 energy payments Chancellor John Healey's Budget on 28 October also raised tax on savings and property income. The OBR cut its 2027 growth forecast to about 1% and said inflation would average 3.5% that year.
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Dr. Thomas Liptak, CC BY-SA 4.0 ECB holds rates as Lagarde says she will step down nine months early
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Federal Reserve, public domain Fed holds rates at 3.75%–4% as two policymakers vote for a rise
Governor Lisa Cook and Cleveland Fed President Beth Hammack wanted a quarter-point increase on 28 October. Figures published the next day showed the economy grew at a 3.4% annual rate in the third quarter.