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Thu, 05 Nov 2026

Thu, 05 Nov 2026 Interest rates expected to rise for first time in over three years

Most analysts are predicting an increase from 3.75% to 4%, the first increase in more than three years.

* Most analysts predict a rise from 3.75% to 4%, which would increase borrowing costs for individuals and businesses but boost savers.
* Rising inflation, driven by high petrol and diesel prices, is pushing policymakers towards an interest rate hike.
* The Consumer Prices Index (CPI) measure of inflation was 3.5% in the year to September, up from 3.1% the previous month and well above the central bank's 2% target.
* A quarter-point rise would mean a £31 increase in monthly repayments for tracker mortgage-holders and a £14 increase for those on variable deals.
* Savers could see improved interest rates if the Bank rate rises, while lenders are having to judge what may happen to the UK's economic outlook, which is highly connected to changes in international events.