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United Kingdom

Bank of England raises Bank Rate to 4% in 8-1 vote

The first rate increase since 2023 raises borrowing costs for mortgage holders, hauliers and businesses, with further rises signalled.

Photo: Echo

What happened

The Bank of England's Monetary Policy Committee voted 8-1 to raise Bank Rate by 0.25 percentage points to 4%. jpmorgan.com+2 Catherine Mann, an external member, voted for a larger 0.5 percentage point increase. jpmorgan.com+1 It is the first increase since August 2023. walkercrips.co.uk+1 The Bank said further rate increases could be needed, with Governor Andrew Bailey saying a rise could come as early as December. ssga.com+3

Around it

The Bank expects inflation to reach around 5% in the first half of 2027 as energy prices rise, with CPI inflation at 3.5% in September. rsmuk.com+3 Around 510,000 tracker mortgage borrowers face an average monthly payment rise of £30.72, according to UK Finance. Echo Logistics UK warns of delayed investment in vehicles and warehouses and falling freight volumes, with the biggest impact on SMEs. trans.info

What comes next

The next Bank Rate decision is due on 17 December 2026. traderpublic.com+1

Sources

  1. jpmorgan.comBank of England: Fireworks at Threadneedle Street
  2. ssga.comUS resilience stands out as rates move higher
  3. EchoMortgage shock as 510,000 homeowners face £30-a-month rise after interest rates go up
  4. rsmuk.comThe Week Ahead: Bank of England takes a tougher stance as global risks grow
  5. walkercrips.co.ukMarket Commentary: 10 November 2026
  6. traderpublic.comBank of England raises Bank Rate to 4% after 8, 1 MPC vote
  7. bnpparibas.comEcoNews of 9 November 2026
  8. trans.infoInterest rates rise to 4%: what it means for UK hauliers

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