UK interest rates: Bank of England expected to raise them for first time in over three years
The Bank of England has raised interest rates from 3.75% to 4% to combat rising inflation driven by energy and fuel costs. This move increases borrowing costs for mortgages and loans while offering higher returns for savers.
Why it matters
Interest rate adjustments directly impact the cost of living and household finances, reflecting the central bank's response to broader economic pressures.
Image source, Getty Images By Kevin Peachey Cost of living correspondent Published 5 November 2026, 00:00 GMT Updated Just now The Bank of England has hiked interest rates for the first time in more than three years as it attempts to curb rising prices.
Rates were increased to 4% from 3.75% in a decision that was widely expected as petrol and diesel prices fuel inflation.
The increase will push up the cost of borrowing money for things such as mortgages, loans and credit cards.
But the move can offer a boost to savers, pushing up the rate offered as a return on savings.
Close attention will now be paid to any hints from the MPC on the future direction of interest rates.
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