Bank of England raises Bank Rate to 4% in an 8–1 vote
Bank Rate rises from 3.75% to 4%. The dissenting member preferred a larger increase to 4.25%; the central bank forecasts inflation of around 5% by mid-2027.
The Bank of England raised Bank Rate to 4%, from 3.75%, in its decision published on 5 November 2026. Its Monetary Policy Committee concluded its meeting on 4 November and approved a 0.25-percentage-point increase by an 8–1 vote.
The dissent was not for a hold or cut: one member preferred a 0.50-percentage-point increase to 4.25%. All nine therefore favoured tighter policy, differing over its extent.
Energy and inflation
The central bank records UK inflation at 3.5% in September and forecasts a rise to around 5% by mid-2027 as higher energy costs feed through. The latter is a projection under its assumptions, rather than an observed inflation reading.
The Committee says activity data were stronger than expected. It still sees limited evidence of energy costs feeding through into other prices and wages, but judges the prospective inflationary pressure sufficient to warrant a rate increase.
What comes next
The Bank says monetary policy is not on a pre-set path. It will reassess energy prices, pay, pricing behaviour and economic activity against its 2% inflation target. The next scheduled decision is listed for 17 December 2026.
This decision concerns sterling’s policy rate. It does not automatically change ECB rates or every individual loan and savings contract; the consequences for a customer depend on their product’s terms.
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