Business · Economy · 30 mins ago
Bank of England expected to raise rates to 4% as inflation rises
The Bank of England is expected to raise interest rates at its next decision on Thursday, November 5.
Markets expect the rate to rise from 3.75% to 4%, which would be the first increase since August 2023.
The decision is made by the Bank’s Monetary Policy Committee, which has been weighing whether borrowing costs are high enough to slow inflation.
UK inflation reached 3.5% in September, above the Bank’s 2% target.
Higher fuel and household energy costs are adding to price pressures, with the conflict in the Middle East also pushing up petrol and diesel prices.
A rate rise would make borrowing more expensive for households and businesses, while aiming to limit further price increases.
The committee will announce its decision on November 5; the articles describe a possible increase, not a decision already made.
The Bank of England is widely expected to raise its base rate from 3.75% to 4% on 5 November.
The expected increase follows UK inflation rising to 3.5% in September, its highest level in 11 months.
The Middle East conflict and higher energy prices have contributed to inflation moving further above the Bank’s 2% target.
More than 2.3 million UK households are due to reach the end of fixed-rate mortgage deals in 2027, potentially facing higher payments.
The Bank is expected to publish updated forecasts for economic growth and inflation alongside its rate decision.
- Who
- The Bank of England’s Monetary Policy Committee.
- What
- It is widely expected to raise the base rate from 3.75% to 4%.
- When
- The decision is expected on 5 November 2026.
- Where
- The United Kingdom.
- Why
- Inflation rose to 3.5% in September, with higher energy prices and the Middle East conflict adding to price pressures.
This story does not have two clearly opposing sides.
The Bank of England last increased borrowing costs, according to the Evening Standard.
Ofgem’s energy price cap rose by 3.6% for a typical household.
UK CPI inflation rose to 3.5%.
The Bank of England is expected to announce its next interest rate decision.
- Expected base rate
- 4%, up from 3.75%
- Expected decision date
- 5 November 2026
- UK inflation
- 3.5% in September
- Bank inflation target
- 2%
- Households ending fixed-rate deals
- More than 2.3 million in 2027
6 sources
التضخم السنوي في إندونيسيا يتراجع إلى 3.23 % خلال أكتوبر
Millions in UK brace to remortgage on worse deals as rate rise looms
BoE set to raise rates to 4% in fight against inflation
The Bank of England Ponders a New Normal for Interest Rates
Bank of England expected to raise interest rates for first time since 2023
What people are saying
We imagine that many committee members’ patience with the recent rise in inflation has worn thin.
The longer energy prices remain elevated, the greater the risk that a temporary price shock becomes more permanent; a ‘risk management’ hike could guard against this.
interest rate rise to 4% looks all but certain
take the pressure off in the coldest months and see people through to the spring