Interest rates: Bank of England decision on Thursday, with a rise to 4% expected

Updated 2 Nov 2026, 12:33 · First published 2 Nov 2026

The Bank of England will announce its next interest rate decision at 12 noon on Thursday 5 November, and most economists expect rates to rise.

Why a rise is expected

Inflation has been climbing, driven mostly by energy prices. Figures from the Office for National Statistics showed CPI inflation at 3.5% in September, well above the Bank’s 2% target. A Reuters poll of 63 economists in mid-October found 54 expected a quarter-point rise this week.

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In September the Monetary Policy Committee voted 6-3 to hold rates at 3.75%, with three members, Megan Greene, Catherine Mann and Huw Pill, already voting for a rise to 4%. The Bank said risks to inflation were “tilted to the upside” and that it “stands ready to act as necessary”.

What it means for you

• Mortgages: tracker and variable-rate mortgages usually rise soon after a rate increase. Fixed deals are not affected until they end, but new fixed rates may already reflect expected rises.
• Savings: savings rates could improve, so it may be worth checking your account.
• Loans and credit cards: variable borrowing may become more expensive.

The Bank will also publish its quarterly Monetary Policy Report on Thursday, with new forecasts for inflation and growth.

Sources: Bank of England, HomeOwners Alliance, Reuters, ONS. Photo: Bank of England, Steve Daniels, CC BY-SA 2.0.

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