BoE raises Bank Rate to 4%

The Bank of England lifted its Bank Rate by 0.25 percentage points to 4% on November 05, 2026, its first increase in more than three years. Mettis Global reported that the Monetary Policy Committee approved the move by an 8-1 vote; one member favoured a larger rise, of 0.5 percentage points, to 4.25%.

The bank cited higher energy costs amid the Middle East conflict and inflationary pressure as reasons for tightening policy. UK inflation reached 3.5% in September, and officials expect it to approach 5% by the middle of next year before easing. The committee said it would assess evidence at future meetings, including wage trends and the extent to which energy costs spread to other prices, while aiming to return inflation to its 2% target over the medium term.