News update as of November 10, 2026. This reflects conditions at the time of writing and is for informational purposes only, not financial advice.
The Bank of England raised Bank Rate by 25 basis points to 4.00% on Thursday, November 5, 2026. It is the Bank’s first rate increase since August 2023 and ends a long run of holds.
The Vote
The Monetary Policy Committee voted 8–1 for the hike. The only dissenter, Catherine Mann, wanted a bigger half-point increase to 4.25%. No member voted to keep rates unchanged. That is a notable shift from September, when the committee held on a 6–3 vote. Members who had previously supported holding, including Swati Dhingra and Alan Taylor, voted to raise this time.
Why the Bank Hiked
The Bank pointed to the conflict in the Middle East, now in its ninth month, and rising global energy prices, which continue to push up UK inflation. With energy feeding into household bills and business costs, the committee judged it needed to act to stop higher inflation becoming entrenched.
What Comes Next
The Bank said policy is not on a pre-set path, meaning future moves will depend on the data. The next decision is on December 17, 2026. Key data before then include UK inflation for October on November 18.
How the Pound Reacted
As we noted in our preview, much of the hike was priced in after GBP/USD rallied for six straight sessions. The pound held its gains rather than surging, and GBP/USD was trading near 1.3450 on November 10. The lack of any vote to hold, and one vote for a larger move, gave the decision a hawkish tone that helped limit any “sell the fact” pullback.
The Bigger Picture
The Bank of England now joins the Federal Reserve, the European Central Bank, the Reserve Bank of Australia and the Bank of Japan in tightening policy this year. With almost every major central bank raising rates, currencies are being driven less by whether a central bank hikes and more by how quickly each one moves compared with the others.