Worldview Advisory
United Kingdom

Bank of England raises Bank Rate to 4%, first increase since 2023

The rise lifts tracker mortgage payments and borrowing costs for households and businesses, with the Bank signalling further increases may follow.

Photo: Echo

What happened

The Bank of England raised Bank Rate by 0.25 percentage points to 4%, its first increase since 2023. jpmorgan.com+2 The Monetary Policy Committee voted 8 to 1, with Catherine Mann preferring a 50 basis point rise. jpmorgan.com+2 The Bank cited energy prices linked to the conflict in the Middle East as the main driver of inflation. trans.info+2 Around 510,000 tracker mortgage holders face an average increase of £30.72 a month, according to UK Finance. Echo

Around it

CPI inflation rose to 3.5% in September and is expected to peak at around 5% by mid-2027. trans.info+1 Logistics UK warned of delayed investment in vehicles and warehouses and falling freight volumes. trans.info UK house prices are falling at their fastest pace in three years, according to a count cited by Wealthwise. Wealthwise Ten-year gilt yields fell to 5.1%, their lowest since late August, as oil prices declined. tradingeconomics.com

What comes next

The next Bank of England rate decision is due on 17 December. trans.info Markets have priced in three more rate increases by November 2027. tradingeconomics.com

Sources

  1. jpmorgan.comBank of England: Fireworks at Threadneedle Street
  2. trans.infoInterest rates rise to 4%: what it means for UK hauliers
  3. Liverpool EchoBBC Moneybox expert warning to some with over £11,000 in savings
  4. bnpparibas.comEcoNews of 9 November 2026
  5. EchoMortgage shock as 510,000 homeowners face £30-a-month rise after interest rates go up
  6. WealthwiseMonday Club
  7. tradingeconomics.comUK Gilt Yields Ease Amid Falling Oil Prices

More from the United Kingdom

Worldview Advisory

Welcome to Worldview Advisory. We're a public affairs and capital markets advisory firm, focused on political risk for asset owners, investors, boards and executives. How can we help?