Bank of England raises interest rate to 4%

November 5, 2026. The Bank of England raised its benchmark rate by 0.25 percentage points, from 3.75% to 4%. Inflation stood at 3.5%, and the bank expects it to reach about 5% by mid-2027 as higher energy costs spread through the economy.

Why it matters

The decision influences borrowing costs and savings returns across the UK. The bank aims to limit the pass-through from energy into other prices and wages; its inflation projection is a forecast, not a guaranteed outcome.

Rockstar Briefing analysis

The increase illustrates the difficulty of containing an energy-driven price shock without making finance more expensive. Businesses and investors should watch energy prices and inflation persistence; the bank says it will assess each decision independently and has not promised a fixed sequence of increases.

Primary source: Bank of England, November 5 decision. Featured image: AI-generated illustration.