Bank Rate raised to 4%: November 2026 decision

The Bank of England’s Monetary Policy Committee (MPC) has raised Bank Rate by 0.25 percentage points to 4%. The decision was published on Thursday 5 November 2026 after the meeting that ended on 4 November. The Committee voted 8–1 for the quarter-point increase. One member preferred a larger rise, of 0.5 percentage points, to 4.25%. This post replaces our earlier preview and sets out what was decided, the reasons the Bank gave, and what a higher Bank Rate does and does not change for people who repay a personal loan, a credit card or an overdraft. It is not advice, and LoanCalc Lab is not a lender or a broker.

What was decided

According to the November 2026 Monetary Policy Summary and minutes, eight members voted to increase Bank Rate by 0.25 percentage points, to 4%: Andrew Bailey, Sarah Breeden, Swati Dhingra, Megan Greene, Clare Lombardelli, Huw Pill, Dave Ramsden and Alan Taylor. Catherine L Mann voted against that proposition and preferred an increase of 0.5 percentage points, to 4.25%. The Bank’s Bank Rate page now shows the current rate as 4%.

Bank Rate had stood at 3.75% since the December 2025 decision. At the previous meeting, in September 2026, the Committee had held it at 3.75% by a 6–3 vote, with three members already preferring a rise to 4%. The November vote therefore moved the majority onto the side that had been calling for a higher rate.

Why the Committee raised Bank Rate

The Monetary Policy Summary puts the decision in the context of higher energy prices and a stronger near-term inflation path. It notes that the conflict in the Middle East is in its ninth month and that global energy prices have continued to rise. UK CPI inflation increased to 3.5% in September. The Committee said inflation is now expected to rise to around 5% by the middle of next year, before falling back as the direct effect of energy prices on the annual rate fades and still-restrictive monetary policy bears down on inflation.

The Summary is careful about what has and has not shown up in the data so far. It says the direct effects of higher energy prices are clear and will continue to feed into firm and household energy bills, but that there remains limited evidence of knock-on effects on other prices and wages. Even so, the Committee judged that “the degree of inflationary pressure in the pipeline is now sufficient to warrant an increase in Bank Rate.” It also noted that activity data in recent months have generally been stronger than expected, which added to the case for modestly tighter policy.

The minutes record a range of views among the eight who voted for 0.25 percentage points. Several said further increases could be needed if energy prices stay high and second-round effects in pay and prices begin to appear. Others framed the move as insurance against upside risks, and stressed that policy is not on a pre-set path. Catherine L Mann’s published view was that a larger, 0.5-point rise was warranted from a risk-management and credibility perspective, given the projected rise in inflation and the risk of non-linear responses in price and wage-setting.

The Summary ends with the Committee’s usual forward-looking language: monetary policy is not on a pre-set path; the Committee will continue to assess the evidence at each meeting, especially how likely high energy prices are to feed through to other prices and the economy more broadly, by monitoring pay, pricing behaviour and slack; and it will adjust Bank Rate as necessary to return CPI inflation to the 2% target in the medium term.

What this means for personal loans and credit cards

The most important distinction for anyone with a personal loan is between a loan you already hold and a new quote. Most UK personal loans have a fixed rate and a fixed monthly payment for the whole term, as MoneyHelper explains. If your agreement is fixed, today’s Bank Rate decision does not change your payment, your interest rate or your end date. Your credit agreement or annual statement will say whether your rate is fixed or variable.

Bank Rate matters more for new borrowing and for variable-rate credit. Lenders price new personal loans from their own funding costs, their view of risk and competition. Quoted rates do not move one-for-one with Bank Rate, and they can move before or after a decision. Credit cards and overdrafts usually carry variable rates, which the provider can change under the terms of the agreement, often with notice. Whether any provider passes today’s rise on, and by how much, is a commercial decision for that provider.

For context, the Bank of England’s Money and Credit figures put the average effective rate on new personal loans at 9.85% in September 2026, and on interest-charging credit cards at 21.71%. Those are averages across many borrowers, not quotes, and they pre-date this decision.

A worked example: £10,000 over five years

To show what a small change in a new loan quote is worth in pounds, here is the same £10,000 loan over 60 months with no fees, run through our personal loan / EMI calculator at two illustrative rates half a point apart around the recent BoE average for new personal loans. These rates are examples chosen to show the arithmetic. They are not today’s market rates and not a prediction of where any lender’s quotes will go after this decision.

• At 9.5%: £210.02 a month, total interest £2,601, total repaid £12,601. Interest in the first year is £880.
• At 9.75%: £211.24 a month, total interest £2,675, total repaid £12,675. Interest in the first year is £903.

A 0.25-point difference in the quoted rate — the same size as today’s Bank Rate step — adds £1.22 a month and about £74 over five years on this loan. That is a useful scale for reading new quotes, not a claim that your next offer will move by exactly 0.25 points. The effect on any real quote depends on the lender, your credit record, the amount and the term, and any fees, which is why comparing the APR rather than the headline rate matters.

If you already hold a loan and are weighing whether a lower rate elsewhere would ever cover the cost of switching, the refinance break-even calculator weighs the interest saved against settlement charges and new fees. A small change in rate rarely covers those costs on a short remaining term, and we are not suggesting anyone refinance.

What comes next

The following Bank Rate decision is due on Thursday 17 December 2026, the last of the year. The minutes of the meeting ending on 16 December will be published that day. The Bank’s published MPC dates for 2027 begin on 4 February. Separately, the Office for National Statistics is due to publish the next CPI figures on 18 November — covered in our October inflation preview — and the next Money and Credit release is due on 30 November.

We will review this post after each Bank Rate decision. The address stays the same; only the content and the updated date change.

Related news

• UK inflation October 2026: what to watch — the ONS figures due on 18 November.
• UK borrowing costs: Money and Credit data — card and loan rates from the Bank of England, next due 30 November.
• UK Budget: what it means for borrowers — what Budget 2026 did and did not change for people with debts.

Sources

• Bank of England — Monetary Policy Summary and minutes, November 2026
• Bank of England — Interest rates and Bank Rate
• Bank of England — Upcoming MPC dates
• Bank of England — Money and Credit, September 2026
• MoneyHelper — Personal loans (product norms only)

Disclaimer

This post and all example figures are illustrative only. They are not personalised financial advice, not a credit offer, not a forecast of any future Bank of England decision and not a recommendation to borrow, overpay, refinance or keep any existing credit. LoanCalc Lab is not a lender or a broker. Rates, fees and terms vary by product and lender. Always read your lender’s disclosure and regulated pre-contract information for your circumstances.