An increase from 3.75% to 4%
The Bank of England raised Bank Rate by 0.25 percentage points to 4% in its November 5 announcement. The decision came from the Monetary Policy Committee meeting ending on November 4.
Eight members supported the quarter-point rise. Catherine Mann preferred a larger increase to 4.25%, so the dissent was for more tightening rather than leaving the rate unchanged.
Why the Bank acted
The Bank says higher energy costs have increased inflation pressure. UK CPI inflation reached 3.5% in September; its forecast now puts inflation at around 5% by mid-2027. That is a projection, not an inflation reading already recorded.
The MPC says future decisions will depend on the evidence. Today’s increase does not establish a fixed timetable of further rises.
Check your own rate and effective date
Bank Rate influences borrowing and savings rates, but it is not the rate every household pays or receives. MoneyHelper explains that the effect on a mortgage depends on its type and when the current deal ends.
A tracker linked to Bank Rate may change with it. An existing fixed mortgage rate generally stays fixed during the agreed period. Savings providers do not necessarily raise an account’s rate automatically when Bank Rate increases.
Check whether your agreement is fixed, variable or linked to Bank Rate, then read your provider’s notice for the new rate and start date. Do not assume a 0.25-point rise applies to every account or that your payment changes today. The next MPC minutes are scheduled for publication on December 17, 2026.
