Bank of England raises interest rate to 4%, first hike in over three years

The Bank of England's Monetary Policy Committee voted 8-1 to increase the benchmark interest rate by a quarter point to 4% on November 5, 2026, marking its first hike since August 2023. The central bank also revised up its UK growth forecasts for 2026 and 2027 and warned that inflation could peak near 5% next year, driven by higher energy costs amid the US-Iran conflict.