Bank of England raises Bank Rate to 4.00% in first hike over three years
CIE News ·
Based on an official regulatory or court document.
The Bank of England lifted its benchmark interest rate to 4.00% in an 8-1 vote, delivering its first hike in more than three years to tackle inflation driven by energy disruptions.
The Bank of England's Monetary Policy Committee voted 8–1 on November 5, 2026, to raise the Bank Rate by 25 basis points to 4.00%, marking the central bank's first rate increase in over three years. One committee member dissented in favor of a larger 50-basis-point adjustment to 4.25%.
According to bankofengland.co.uk, Governor Andrew Bailey cited inflationary pressure from higher energy prices as the main factor requiring an interest rate increase. Official projections placed UK CPI inflation at 3.5% for September, with the central bank projecting inflation to peak near 4.9% to 5.0% by mid-2027 amid Middle East energy disruptions.
Following the decision, the British pound traded at around $1.3468, and the UK two-year gilt yield climbed roughly 3 basis points to 4.77%, live.euronext.com reported. The central bank stated that future policy moves will depend on economic conditions, noting that further increases remain possible unless the conflict affecting energy supplies is resolved.
Key facts
- Bank Rate raised to 4.00%
- First hike in over 3 years
- 8-1 MPC vote result
- September CPI inflation at 3.5%
Read the original at bankofengland.co.uk