The Bank of England has raised Bank Rate from 3.75% to 4% following its latest Monetary Policy Committee (MPC) meeting on Thursday 5 November 2026. The 0.25 percentage point increase is the first rise in UK interest rates since August 2023.
The announcement matters to people with mortgages, credit cards, personal loans and savings accounts, although changes in Bank Rate do not affect every financial product in the same way.
Here’s what the latest decision means for your borrowing and savings, why the MPC made its decision and when the next announcement is due.
What is the latest Bank of England interest rate decision?
At its November 2026 meeting, the MPC decided to increase Bank Rate to 4%. This compares with a Bank Rate of 3.75% after the September announcement.
The committee voted 8–1 in favour of a 0.25 percentage point increase, according to reporting on the announcement. Catherine L Mann preferred a larger increase to 4.25%.
The decision was published alongside the November Monetary Policy Report, which sets out the Bank’s latest view of inflation, economic growth and the outlook for the UK economy. Read the official November MPC decision and minutes for the full announcement.
Why has the Bank of England made this decision?
The MPC sets Bank Rate to help bring inflation back to the UK’s 2% target over time. Higher rates generally make borrowing more expensive and encourage saving, which can reduce demand in the economy. Lower rates tend to make borrowing cheaper and may encourage spending.
The increase follows renewed pressure on UK inflation, particularly from higher oil and gas prices linked to the conflict in the Middle East. The UK’s Consumer Prices Index (CPI) inflation rate reached 3.5% in September 2026, above the Bank’s 2% target, increasing concern that elevated energy costs might feed through to other prices and wages.
By raising Bank Rate, the MPC is seeking to limit the risk of higher inflation becoming persistent. The Bank’s November Monetary Policy Report also considers the outlook for inflation and economic growth, although the path of future interest rates will depend on how those conditions develop.
The latest assessment is available in the Bank of England’s November Monetary Policy Report.
What does the decision mean for credit cards?
Credit card providers set their own interest rates. Although Bank Rate has risen to 4%, credit card APRs will not necessarily increase by the same amount or at the same time.
If you already have a credit card, check the interest rate on your balance, any introductory 0% period and when the promotional rate ends. A new credit card’s interest rate will depend on the provider’s pricing and your individual circumstances.
If you’re reviewing your options, you can compare credit cards with Money Expert. If you are deciding between borrowing products, our loans vs credit cards guide explains the key differences.
How does the decision affect personal loans?
Most existing fixed-rate personal loans have agreed repayments for the loan term, so a Bank Rate announcement will not usually change what you pay each month.
Rates on new loans may change as lenders respond to funding costs, competition and wider market conditions. The interest rate you are offered also depends on your credit history, income, loan amount and repayment term.
When borrowing, look beyond the monthly repayment. Compare the annual percentage rate (APR), any fees and the total amount repayable. For more detail, read our guide to APR and interest rates or explore loan comparison options.
What does the decision mean for mortgages?
The impact on mortgage repayments depends mainly on the type of deal you have. A base rate change does not immediately alter every borrower’s monthly payment.
Tracker mortgages
Tracker mortgage rates usually follow Bank Rate plus an agreed margin. Following the November increase, the interest charged on a tracker mortgage will generally rise by 0.25 percentage points, depending on the terms of the deal. Check your lender’s terms to see when any change takes effect.
Fixed-rate mortgages
If you have a fixed-rate mortgage, your agreed interest rate remains unchanged until the fixed period ends. If you are approaching remortgaging, the rates on new deals may differ from your current rate, even if your existing fixed rate has not changed.
Standard variable rate mortgages
A lender sets its own standard variable rate (SVR). It may decide to increase that rate following the November MPC decision, but it is not required to pass on the 0.25 percentage point increase in full.
For more information, see our mortgage interest rates guide or explore mortgage options.
What happens to savings rates?
Bank Rate influences the interest banks and building societies pay savers, but providers decide their own savings rates. Variable-rate savings accounts may offer higher returns following the November increase, but providers are not required to pass on the change. Fixed-rate savings accounts usually keep the agreed rate until the fixed term ends.
If you have savings, check the rate you are receiving and whether it includes an introductory bonus. For comparisons, look at the annual equivalent rate (AER), access restrictions and any minimum deposit requirements.
You can review available products through our savings accounts page.
Bank of England interest rate history
The table below shows Bank Rate following recent MPC announcements. The latest decision will be added to this rolling article after each meeting.
MPC announcement | Bank Rate | Decision |
5 November 2026 | 4% | Raised by 0.25 percentage points |
17 September 2026 | 3.75% | Held |
30 July 2026 | 3.75% | Held |
18 June 2026 | 3.75% | Held |
30 April 2026 | 3.75% | Held |
19 March 2026 | 3.75% | Held |
5 February 2026 | 3.75% | Held |
Source: Bank of England MPC summaries and meeting dates.
When is the next Bank of England interest rate decision?
The next MPC announcement is scheduled for Thursday 17 December 2026. The Bank of England usually releases its decision and meeting minutes at 12 noon.
The MPC meets eight times a year to review inflation and the wider economy. Future decisions depend on economic conditions, so no change in rates is guaranteed.
What should you check after the announcement?
If you have a mortgage, find out whether your rate is fixed, tracker or variable, and check when your current deal ends. Tracker borrowers should check when their lender will apply the latest increase. If you have a loan or credit card, review your APR, repayment terms and any promotional expiry dates.
For savings, check your current interest rate and whether the account still suits how often you need access to your money. Comparing product costs and terms is more useful than responding to the headline rate alone.
FAQs
What is the current Bank of England base rate?
Following the 5 November 2026 MPC decision, Bank Rate is 4%.
Did the Bank of England raise or cut interest rates in November?
The MPC raised Bank Rate by 0.25 percentage points to 4% on 5 November 2026. Before the meeting, the rate stood at 3.75%.
Will my mortgage payments change straight away?
Tracker mortgages generally follow Bank Rate under their terms. Fixed-rate mortgage payments stay the same during the fixed period, while lenders decide whether to change standard variable rates.
Will credit card and loan interest rates change?
Providers set their own lending rates. Existing fixed-rate personal loans usually keep the same repayments, while rates on new loans and credit cards depend on each lender’s pricing and your circumstances.
Does a change in Bank Rate affect savings?
Savings providers may increase variable rates following the November rise. Existing fixed-rate savings accounts usually keep the agreed interest rate during the fixed term.
When is the next MPC meeting?
The next scheduled Bank of England interest rate announcement is Thursday 17 December 2026.
Sources
November 2026 MPC decision and minutes
