Bank of England poised to raise rates but may push back on bets for more
Traders expect the first rate increase since August 2023 as policymakers weigh persistent inflation against signs of slower growth.
- On Thursday, November 5, 2026, the Bank of England is widely expected to raise Bank Rate to 4.0%, marking its first hike since August 2023.
- Inflation hitting 3.5% in September forced the Monetary Policy Committee's hand, despite internal division regarding the necessity of immediate action.
- Nearly 1.8 million households face expiring fixed-rate deals as average two- and five-year fixed mortgage rates climb to approximately 6%, reaching three-year highs.
- Financial markets have priced in rate hikes reaching 5% by 2027, though Oxford Economics analyst Alexander Harvey suggests the central bank may resist such aggressive expectations.
- Upcoming MPC meeting minutes will provide clues on the future rate path, reflecting signs of mixed economic growth and persistent price pressures.
26 Articles
26 Articles
Rising energy prices and persistent inflationary pressures have darkened the UK's economic outlook and raised the prospect of a rate hike by the Bank of England, a move that could increase the cost of financing.
Bank of England tipped to raise interest rates this week for first time since 2023
Bank of England tipped to raise interest rates this week for first time since 2023 . Borrowing costs could rise again this week as the Bank of England prepares to make its latest interest rate decision
The Economic Times
Times of IndiaGoldman Sachs expects Bank of England to raise rates again in February
Goldman Sachs has revised its outlook on the Bank of England's interest rates, now predicting a possible quarter-point rise in November's monetary policy meeting. This would be the first increase since 2023, influenced by climbing energy costs and robust economic growth. Although immediate policy shifts are unlikely, the Bank will vigilantly observe inflation risks, maintaining rates at 4.25% through mid-next year.
Bank of England poised to raise rates but may push back on bets for more
The Bank of England is expected to bow to inflation pressure from soaring energy costs and raise interest rates on Thursday, though it may push back against investors' bets that several more increases will follow next year.
The Bank of England is expected to raise its policy rate from 3.75% to 4% on November 5th. If this happens, it will be the first rate hike since August 2023. The impact of this potential increase on mortgages will vary depending on the terms of the contract.
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