# Bank of England raises Bank Rate to 4% as inflation outlook worsens

> The MPC voted 8–1 for a quarter-point increase after UK CPI reached 3.5% and the Bank projected inflation near 5% in mid-2027.

Source page: https://stoqly.net/news/boe-bank-rate-4-percent-inflation-2026

- **Published:** 2026-11-08T18:06:13+00:00
- **Section:** In the news

The Bank of England raised Bank Rate by 0.25 percentage points to 4% at the Monetary Policy Committee meeting ending 4 November, tightening policy as higher energy prices worsen the inflation outlook.

**The decision** Eight MPC members voted for the quarter-point increase. One member preferred a half-point move to 4.25%.

## Inflation pressure from energy

The Bank said UK CPI inflation had reached 3.5% in September and was expected to rise to around 5% by the middle of 2027 before falling as the energy shock fades and restrictive policy weighs on demand. The MPC said it would monitor pay, pricing behaviour and economic slack rather than follow a preset rate path.

The decision came as the Bank reported higher global energy prices linked to the prolonged conflict in the Middle East. It said the direct effect on household and business energy bills was clear, while evidence of broader second-round effects on wages and other prices remained limited.

- [Bank of England, November 2026 Monetary Policy Summary and Minutes, published 5 November 2026](https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2026/november-2026)
- [Bank of England facade, Wikimedia Commons, CC0 1.0](https://commons.wikimedia.org/wiki/File:Bank_of_England_Facade.jpg)

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