Bank of England rate decision on 5 November: three of nine already vote to raise

The Bank of England announces its next Bank Rate decision on Thursday 5 November 2026, alongside the November Monetary Policy Report and the minutes of the meeting. Bank Rate is currently 3.75% — and for the first time in a long while the argument inside the Committee is not about how far to cut, but about whether to raise.

What is the Bank of England base rate now?

Bank Rate is 3.75%. It was set at that level on 18 December 2025 and has not moved since: not in February, March, April, June, July or September. By the November meeting it will have stood unchanged for almost eleven months.

Why is a rise being discussed rather than a cut?

Because that is how the Committee voted in September. The decision to hold passed by six votes to three. Three members — Megan Greene, Catherine L Mann and Huw Pill — voted to raise Bank Rate by 0.25 percentage points, to 4%. All three gave the same reason: the risk that expensive energy feeds through into wages and prices is growing, and acting early is cheaper than correcting later.

The driver is inflation. CPI inflation was 3.1% in August against a 2% target, with services inflation at 3.4%. Around 0.7 percentage points of the overshoot came from the direct effects of energy prices, mainly motor fuels. The Bank expects inflation to rise to around 3.75% in 2026 Q4 and slightly above 4% in early 2027.

What has already happened to mortgage rates?

They rose without waiting for the Committee. The September minutes state it plainly: the quoted rate on two-year fixed-rate mortgages is around 95 basis points — 0.95 percentage points — higher than before the conflict in the Middle East began. Lenders price from expectations of Bank Rate, not from today's level, and those expectations are already in the price.

In September the UK short-term interest rate curve peaked at around 4.9% by the end of 2027. That is what market participants believe, not a Bank forecast — but it is where new fixed rates come from.

What should you do if you have a mortgage?

On a tracker or variable rate, the 5 November decision feeds into your payment directly and quickly. On a fixed rate, nothing changes today, but the end date matters: most lenders let you reserve a new rate in advance, typically up to six months before your fix ends, and reserving does not stop you switching to a better offer later. If your fix ends within months, look now rather than after the announcement.

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What about savings?

While markets do not expect a cut, returns on fixed-term savings stay high, which favours savers. But with inflation at 3.1%, an account paying 3% is losing purchasing power rather than protecting it. Compare a savings rate with inflation, not with zero.

When are the next rate decisions?

After 5 November 2026 the next decision is 17 December 2026. The Bank has already published its 2027 dates: 4 February, 18 March, 29 April, 17 June, 29 July, 16 September, 4 November and 16 December.

What else did the Committee decide in September?

Unanimously, to reduce to zero the stock of government bonds bought under quantitative easing. It is a multi-year plan, averaging £46 billion a year, expected to complete by the end of 2034. It affects your mortgage rate indirectly, through the yield on long-dated government bonds.

Checked against Bank of England material on 27 October 2026.