Bank of England Increases Key Interest Rate to 4% Amid Inflation Concerns

The Bank of England raised its base rate by 25 basis points to 4% on November 5, 2026, marking its first hike in over three years. This decision aims to counter rising UK inflation, now projected at 4.9% by mid-2027, up from 3.2%. Governor Andrew Bailey indicated further increases might be necessary if the Middle East conflict continues to keep oil prices above $100 a barrel, impacting UK bond yields.