{"id":5568,"date":"2026-11-05T20:22:34","date_gmt":"2026-11-05T20:22:34","guid":{"rendered":"https:\/\/260web.com\/news\/interest-rates-hiked-to-4-in-first-increase-in-over-three-years\/"},"modified":"2026-11-05T20:22:34","modified_gmt":"2026-11-05T20:22:34","slug":"interest-rates-hiked-to-4-in-first-increase-in-over-three-years","status":"publish","type":"post","link":"https:\/\/260web.com\/news\/interest-rates-hiked-to-4-in-first-increase-in-over-three-years\/","title":{"rendered":"Interest rates hiked to 4% in first increase in over three years"},"content":{"rendered":"<p>Interest rates hiked to 4% in first increase in over three years<\/p>\n<div data-block=\"headline\" class=\"ssrcss-l7emlr-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-usmnse-Spacer e1aon0op0\"><\/div>\n<\/div>\n<div data-block=\"image\" class=\"ssrcss-l7emlr-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-126h8e-Spacer e1aon0op0\">\n<div data-testid=\"image\" class=\"ssrcss-1uy5kw5-FullWidthWrapper ep2nwvo1\">\n<figure class=\"ssrcss-hc6arm-StyledFigure e34k3c22\">\n<div class=\"ssrcss-ab5fd8-StyledFigureContainer e34k3c21\"><span class=\"ssrcss-lcplh4-Placeholder etlorgc0\"><picture><source srcset=\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/5e8c\/live\/91074120-d849-11f1-b870-55415e6a9944.jpg.webp 240w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/320\/cpsprodpb\/5e8c\/live\/91074120-d849-11f1-b870-55415e6a9944.jpg.webp 320w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/480\/cpsprodpb\/5e8c\/live\/91074120-d849-11f1-b870-55415e6a9944.jpg.webp 480w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/624\/cpsprodpb\/5e8c\/live\/91074120-d849-11f1-b870-55415e6a9944.jpg.webp 624w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/800\/cpsprodpb\/5e8c\/live\/91074120-d849-11f1-b870-55415e6a9944.jpg.webp 800w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/976\/cpsprodpb\/5e8c\/live\/91074120-d849-11f1-b870-55415e6a9944.jpg.webp 976w\" type=\"image\/webp\"><img decoding=\"async\" alt=\"Out-of-focus commuters walking on the streets around the Bank of England building in the City of London.\" src=\"https:\/\/260web.com\/news\/wp-content\/uploads\/2026\/11\/adMCsX.jpg\" srcset=\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/5e8c\/live\/91074120-d849-11f1-b870-55415e6a9944.jpg 240w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/320\/cpsprodpb\/5e8c\/live\/91074120-d849-11f1-b870-55415e6a9944.jpg 320w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/480\/cpsprodpb\/5e8c\/live\/91074120-d849-11f1-b870-55415e6a9944.jpg 480w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/624\/cpsprodpb\/5e8c\/live\/91074120-d849-11f1-b870-55415e6a9944.jpg 624w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/800\/cpsprodpb\/5e8c\/live\/91074120-d849-11f1-b870-55415e6a9944.jpg 800w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/976\/cpsprodpb\/5e8c\/live\/91074120-d849-11f1-b870-55415e6a9944.jpg 976w\" width=\"2048\" height=\"1151.9396511079678\" class=\"ssrcss-egie1y-Image edrdn950\"><\/picture><\/span><span role=\"text\" class=\"ssrcss-tzgxt7-StyledFigureCopyright e34k3c20\">Getty Images<\/span><\/div>\n<\/figure>\n<\/div>\n<\/div>\n<\/div>\n<div data-block=\"byline\" class=\"ssrcss-vxwoax-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-126h8e-Spacer e1aon0op0\">\n<div data-testid=\"multi-byline\"><span><span class=\"ssrcss-16u1n8p-TextContributorName epw3ir01\">Michael Race<\/span><span class=\"ssrcss-1ai8n1t-Text e1xjs3jz0\"><span aria-hidden=\"true\">,&nbsp;<\/span>Business reporter<\/span><\/span><span><span class=\"ssrcss-1ai8n1t-Text e1xjs3jz0\">&nbsp;<!-- -->and<!-- -->&nbsp;<\/span><span class=\"ssrcss-16u1n8p-TextContributorName epw3ir01\">Kevin Peachey<\/span><span class=\"ssrcss-1ai8n1t-Text e1xjs3jz0\"><span aria-hidden=\"true\">,&nbsp;<\/span>Cost of living correspondent<\/span><\/span><\/div>\n<\/div>\n<\/div>\n<div data-block=\"metadata\" class=\"ssrcss-l7emlr-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-126h8e-Spacer e1aon0op0\">\n<div data-testid=\"metadata\">\n<div>\n<ul role=\"list\" class=\"ssrcss-9tw7r1-MetadataStripContainer eh44mf03\">\n<div class=\"ssrcss-10q9h22-GroupChildrenForWrapping eh44mf02\">\n<li role=\"listitem\" class=\"ssrcss-sf7vdp-MetadataStripItem eh44mf01\">\n<div class=\"ssrcss-m5j4pi-MetadataContent eh44mf00\"><span class=\"ssrcss-1pvwv4b-MetadataSnippet e4wm5bw3\"><span class=\"ssrcss-61mhsj-MetadataText e4wm5bw1\"><time data-testid=\"timestamp\" datetime=\"2026-11-05T00:00:09.318Z\">5 November 2026, 00:00 GMT<\/time><\/span><\/span><\/div>\n<\/li>\n<li role=\"listitem\" class=\"ssrcss-sf7vdp-MetadataStripItem eh44mf01\">\n<div class=\"ssrcss-m5j4pi-MetadataContent eh44mf00\"><span class=\"ssrcss-1pvwv4b-MetadataSnippet e4wm5bw3\"><span class=\"ssrcss-61mhsj-MetadataText e4wm5bw1\"><span data-testid=\"participate:comments\" class=\"ssrcss-1uthlc3-IconContainer e4wm5bw0\"><svg viewBox=\"0 0 32 32\" width=\"1em\" height=\"1em\" class=\"ssrcss-xi5oyi-StyledIcon e161cein1\" focusable=\"false\" aria-hidden=\"true\"><path d=\"M1.1 24.2h29.8V1H1.1zM5 11.3h16.5v2.6H5zm20 9H5v-2.6h20zm1.5-12.8H5V4.9h21.5zM13 23.6H6.6V31H9z\" \/><\/svg><\/span>2389 Comments<\/span><\/span><\/div>\n<\/li>\n<\/div>\n<\/ul>\n<\/div>\n<div class=\"ssrcss-1ey53kj-MetadataSnippetWrapper exhp0uq0\"><span class=\"ssrcss-1pvwv4b-MetadataSnippet e4wm5bw3\"><span class=\"ssrcss-61mhsj-MetadataText e4wm5bw1\"><time data-testid=\"timestamp\" datetime=\"2026-11-05T17:09:55.790Z\">Updated 3 hours ago<\/time><\/span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-block=\"text\" class=\"ssrcss-vxwoax-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-126h8e-Spacer e1aon0op0\">\n<div data-testid=\"rich-text\">\n<div class=\"ssrcss-nqezkk-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\"><b>Interest rates have risen for the first time in more than three years and the Bank of England has signalled a further increase is likely unless the US-Iran war is resolved.<\/b><\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">Rates rose to 4% from 3.75% in a bid to curb inflation mainly driven by the conflict&#8217;s impact on global oil prices.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">Andrew Bailey, the Bank&#8217;s governor, said the decision &#8220;shouldn&#8217;t be seen as the first in an inevitable long sequence of hikes&#8221;, but warned &#8220;unless the conflict in the Middle East is resolved, neither does it seem likely to be the last increase&#8221;.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">The higher level will increase the cost of borrowing for things such as mortgages, loans and credit cards, but will also lead to higher returns on savings.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">The Bank&#8217;s rate-setting committee all backed increasing interest rates, with eight out of nine voting in favour of the rise to 4%. One member wanted an even bigger increase to 4.25%.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">Bailey said the hike was warranted due to higher energy prices and pointed to what happens in the Middle East as the main factor in future decisions.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">&#8220;Put simply, it requires real progress towards settling the conflict in the Middle East,&#8221; the governor said.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">Bailey said he could &#8220;see the argument&#8221; for a further rate hike, before taking a &#8220;more conditional approach&#8221; dependent on the path of energy prices and inflation in the coming months.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">However, the views of members on the rate-setting committee differed on the path forward.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">Clare Lombardelli agreed there was &#8220;likely to be a case for a further increase in rates in the near term&#8221;, while Megan Greene went further, suggesting &#8220;additional hikes&#8221; might be likely depending on how inflation impacted wages, prices and the jobs market.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">However, Alan Taylor said the rate rise was a &#8220;a risk-management &#8216;one-for-now&#8217; insurance hike&#8221;.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-block=\"image\" class=\"ssrcss-l7emlr-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-126h8e-Spacer e1aon0op0\">\n<div data-testid=\"image\" class=\"ssrcss-1uy5kw5-FullWidthWrapper ep2nwvo1\">\n<figure class=\"ssrcss-hc6arm-StyledFigure e34k3c22\">\n<div class=\"ssrcss-ab5fd8-StyledFigureContainer e34k3c21\"><span class=\"ssrcss-17edh64-Placeholder etlorgc0\"><picture><source srcset=\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/e1ae\/live\/c7f934c0-d913-11f1-b441-2b33b063138f.png.webp 240w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/320\/cpsprodpb\/e1ae\/live\/c7f934c0-d913-11f1-b441-2b33b063138f.png.webp 320w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/480\/cpsprodpb\/e1ae\/live\/c7f934c0-d913-11f1-b441-2b33b063138f.png.webp 480w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/624\/cpsprodpb\/e1ae\/live\/c7f934c0-d913-11f1-b441-2b33b063138f.png.webp 624w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/800\/cpsprodpb\/e1ae\/live\/c7f934c0-d913-11f1-b441-2b33b063138f.png.webp 800w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/976\/cpsprodpb\/e1ae\/live\/c7f934c0-d913-11f1-b441-2b33b063138f.png.webp 976w\" type=\"image\/webp\"><img decoding=\"async\" alt=\"A chart showing the Bank of England's base rate from 2021 to today.\" loading=\"lazy\" src=\"https:\/\/260web.com\/news\/wp-content\/uploads\/2026\/11\/XDcPlT.png\" srcset=\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/e1ae\/live\/c7f934c0-d913-11f1-b441-2b33b063138f.png 240w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/320\/cpsprodpb\/e1ae\/live\/c7f934c0-d913-11f1-b441-2b33b063138f.png 320w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/480\/cpsprodpb\/e1ae\/live\/c7f934c0-d913-11f1-b441-2b33b063138f.png 480w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/624\/cpsprodpb\/e1ae\/live\/c7f934c0-d913-11f1-b441-2b33b063138f.png 624w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/800\/cpsprodpb\/e1ae\/live\/c7f934c0-d913-11f1-b441-2b33b063138f.png 800w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/976\/cpsprodpb\/e1ae\/live\/c7f934c0-d913-11f1-b441-2b33b063138f.png 976w\" width=\"1600\" height=\"1600\" class=\"ssrcss-egie1y-Image edrdn950\"><\/picture><\/span><\/div>\n<\/figure>\n<\/div>\n<\/div>\n<\/div>\n<div data-block=\"text\" class=\"ssrcss-vxwoax-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-126h8e-Spacer e1aon0op0\">\n<div data-testid=\"rich-text\">\n<div class=\"ssrcss-nqezkk-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">Inflation, which measures the pace of price rises over time, is well below its peak of a few years ago but remains above the Bank of England&#8217;s 2% target and is expected to increase further next year.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">Prices rose 3.5% in the year to September 2026, largely due to higher fuel prices. Millions of households are also set to be hit by energy bill increases in January.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">Higher fuel prices can lead to prices rising for a host of goods and staples as businesses pass on higher costs to customers.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">But the Bank said there was &#8220;limited evidence&#8221; this had happened so far for goods, such as food, with some firms absorbing cost increases and accepting lower margins.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">In an interview with the BBC, Bailey defended the decision to raise rates despite the Bank&#8217;s assessment that inflation was yet to spread to other parts of the economy.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">He said further increases in energy prices are putting upward pressure on inflation and &#8220;that&#8217;s what we have to seek to lean against&#8221;. <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-block=\"image\" class=\"ssrcss-l7emlr-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-126h8e-Spacer e1aon0op0\">\n<div data-testid=\"image\" class=\"ssrcss-1uy5kw5-FullWidthWrapper ep2nwvo1\">\n<figure class=\"ssrcss-hc6arm-StyledFigure e34k3c22\">\n<div class=\"ssrcss-ab5fd8-StyledFigureContainer e34k3c21\"><span class=\"ssrcss-bofaae-Placeholder etlorgc0\"><picture><source srcset=\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/9d82\/live\/e8934920-d925-11f1-93e1-3b657b665bcf.jpg.webp 240w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/320\/cpsprodpb\/9d82\/live\/e8934920-d925-11f1-93e1-3b657b665bcf.jpg.webp 320w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/480\/cpsprodpb\/9d82\/live\/e8934920-d925-11f1-93e1-3b657b665bcf.jpg.webp 480w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/624\/cpsprodpb\/9d82\/live\/e8934920-d925-11f1-93e1-3b657b665bcf.jpg.webp 624w, https:\/\/260web.com\/news\/wp-content\/uploads\/2026\/11\/aMenap.jpg.webp 800w\" type=\"image\/webp\"><img decoding=\"async\" alt=\"A white man in a white t shirt plays guitar with a black jumper draped around his shoulders.\" loading=\"lazy\" src=\"https:\/\/260web.com\/news\/wp-content\/uploads\/2026\/11\/aMenap.jpg\" srcset=\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/9d82\/live\/e8934920-d925-11f1-93e1-3b657b665bcf.jpg 240w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/320\/cpsprodpb\/9d82\/live\/e8934920-d925-11f1-93e1-3b657b665bcf.jpg 320w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/480\/cpsprodpb\/9d82\/live\/e8934920-d925-11f1-93e1-3b657b665bcf.jpg 480w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/624\/cpsprodpb\/9d82\/live\/e8934920-d925-11f1-93e1-3b657b665bcf.jpg 624w, https:\/\/260web.com\/news\/wp-content\/uploads\/2026\/11\/aMenap.jpg 800w\" width=\"800\" height=\"449\" class=\"ssrcss-egie1y-Image edrdn950\"><\/picture><\/span><span role=\"text\" class=\"ssrcss-tzgxt7-StyledFigureCopyright e34k3c20\">Patrick Bryson<\/span><\/div>\n<\/figure>\n<\/div>\n<\/div>\n<\/div>\n<div data-block=\"text\" class=\"ssrcss-vxwoax-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-126h8e-Spacer e1aon0op0\">\n<div data-testid=\"rich-text\">\n<div class=\"ssrcss-nqezkk-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">Patrick Bryson, from Brighton, is set to see his five-year mortgage term with a 3.51% interest rate end soon.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">The best deal the 51-year-old can find is a 5.17% loan with HSBC, which means his repayments will jump from \u00a31,420 to \u00a31,680 a month from February.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">&#8220;The only thing that bugs me about the mortgage is that after five years of paying it off we are now paying more than we were before,&#8221; said the father-of-three. &#8220;That&#8217;s a bit of a slap in the face.&#8221;<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">The guitar teacher, who has a combined income of around \u00a368,000 a year with his wife, who manages a care home, said the couple is feeling pressure on their finances and so have changed their shopping habits and are looking to reduce their subcription outgoings.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">&#8220;Over the last year I have stopped buying wine, we don&#8217;t go out to eat much anymore, we have knocked takeaways on the head. The prices are ridiculous,&#8221; he said.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-block=\"links\" class=\"ssrcss-vxwoax-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-126h8e-Spacer e1aon0op0\">\n<div spacing=\"4\" class=\"ssrcss-1gccci3-Stack e1y4nx260\">\n<ul role=\"list\" spacing=\"2\" class=\"ssrcss-94r6ik-Stack e1y4nx260\">\n<li class=\"ssrcss-qzx51b-LinkItem e3eyuya1\">\n<div spacing=\"4\" class=\"ssrcss-1gccci3-Stack e1y4nx260\"><span><\/p>\n<p class=\"ssrcss-7zrqh4-LinkHeadline e3eyuya4\"><span aria-hidden=\"false\">Three ways the interest rate rise could affect you<\/span><\/p>\n<p><\/span><\/p>\n<div class=\"ssrcss-1ulytiq-LinkIconContainer e3eyuya3\"><svg viewBox=\"0 0 32 32\" width=\"1em\" height=\"1em\" class=\"ssrcss-xi5oyi-StyledIcon e161cein1\" focusable=\"false\" aria-hidden=\"true\"><path d=\"M21.6 14.3 5.5 31h6.4l14.6-15L11.9 1H5.5l16.1 16.7z\" \/><\/svg><\/div>\n<div>\n<ul role=\"list\" class=\"ssrcss-9tw7r1-MetadataStripContainer eh44mf03\">\n<div class=\"ssrcss-10q9h22-GroupChildrenForWrapping eh44mf02\">\n<li role=\"listitem\" class=\"ssrcss-sf7vdp-MetadataStripItem eh44mf01\">\n<div class=\"ssrcss-m5j4pi-MetadataContent eh44mf00\"><span class=\"ssrcss-1pvwv4b-MetadataSnippet e4wm5bw3\"><span class=\"ssrcss-61mhsj-MetadataText e4wm5bw1\">7 hours ago<\/span><\/span><\/div>\n<\/li>\n<\/div>\n<\/ul>\n<\/div>\n<\/div>\n<\/li>\n<li class=\"ssrcss-qzx51b-LinkItem e3eyuya1\">\n<div spacing=\"4\" class=\"ssrcss-1gccci3-Stack e1y4nx260\"><span><\/p>\n<p class=\"ssrcss-7zrqh4-LinkHeadline e3eyuya4\"><span aria-hidden=\"false\">Faisal Islam: How high will interest rates go? <\/span><\/p>\n<p><\/span><\/p>\n<div class=\"ssrcss-1ulytiq-LinkIconContainer e3eyuya3\"><svg viewBox=\"0 0 32 32\" width=\"1em\" height=\"1em\" class=\"ssrcss-xi5oyi-StyledIcon e161cein1\" focusable=\"false\" aria-hidden=\"true\"><path d=\"M21.6 14.3 5.5 31h6.4l14.6-15L11.9 1H5.5l16.1 16.7z\" \/><\/svg><\/div>\n<div>\n<ul role=\"list\" class=\"ssrcss-9tw7r1-MetadataStripContainer eh44mf03\">\n<div class=\"ssrcss-10q9h22-GroupChildrenForWrapping eh44mf02\">\n<li role=\"listitem\" class=\"ssrcss-sf7vdp-MetadataStripItem eh44mf01\">\n<div class=\"ssrcss-m5j4pi-MetadataContent eh44mf00\"><span class=\"ssrcss-1pvwv4b-MetadataSnippet e4wm5bw3\"><span class=\"ssrcss-61mhsj-MetadataText e4wm5bw1\">7 hours ago<\/span><\/span><\/div>\n<\/li>\n<\/div>\n<\/ul>\n<\/div>\n<\/div>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<div data-block=\"text\" class=\"ssrcss-vxwoax-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-126h8e-Spacer e1aon0op0\">\n<div data-testid=\"rich-text\">\n<div class=\"ssrcss-nqezkk-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">The Bank now expects inflation to peak at 4.9% in the middle of next year, higher than it originally estimated, and not return to 2% until 2028.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">But in an &#8220;adverse scenario&#8221;, where the US-Iran war could escalate further and send oil prices higher, inflation could reach 6.2% in 2027, it suggested.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">While the UK cannot control global energy prices, the Bank raised rates, for the first time since August 2023, in order to limit the knock-on effects of high energy prices resulting in inflation going up across the board.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">Its base rate is what it charges other banks and building societies to borrow money, which influences what customers for mortgages, loans, credit cards get charged, as well as savings rates.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-block=\"flourish\" class=\"ssrcss-l7emlr-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-126h8e-Spacer e1aon0op0\">\n<div class=\"ssrcss-147e9zi-FlourishWrapper eockrme0\">\n<div id=\"30812025\">\n<div data-component=\"include-html\"><iframe loading=\"lazy\" src=\"https:\/\/flo.uri.sh\/visualisation\/30812025\/embed?auto=1\" frameborder=\"0\" scrolling=\"no\" height=\"575\" width=\"700\" style=\"width:100%;\" title=\"Interactive or visual content\"><\/iframe><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-block=\"text\" class=\"ssrcss-vxwoax-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-126h8e-Spacer e1aon0op0\">\n<div data-testid=\"rich-text\">\n<div class=\"ssrcss-nqezkk-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">The rate rise will see 510,000 tracker mortgage-holders see a \u00a331 monthly jump in repayments, according to banking trade body UK Finance.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">Homeowners on fixed deals will see no change, though future products may be affected. <\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">However, people on variable deals will be impacted depending on how their lender reacts to the rate rise. Typically a 0.25pp rise means a \u00a314 increase per month in repayments.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-block=\"image\" class=\"ssrcss-l7emlr-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-126h8e-Spacer e1aon0op0\">\n<div data-testid=\"image\" class=\"ssrcss-1uy5kw5-FullWidthWrapper ep2nwvo1\">\n<figure class=\"ssrcss-hc6arm-StyledFigure e34k3c22\">\n<div class=\"ssrcss-ab5fd8-StyledFigureContainer e34k3c21\"><span class=\"ssrcss-xm7t37-Placeholder etlorgc0\"><picture><source srcset=\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/db83\/live\/16488620-d8e8-11f1-b441-2b33b063138f.png.webp 240w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/320\/cpsprodpb\/db83\/live\/16488620-d8e8-11f1-b441-2b33b063138f.png.webp 320w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/480\/cpsprodpb\/db83\/live\/16488620-d8e8-11f1-b441-2b33b063138f.png.webp 480w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/624\/cpsprodpb\/db83\/live\/16488620-d8e8-11f1-b441-2b33b063138f.png.webp 624w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/800\/cpsprodpb\/db83\/live\/16488620-d8e8-11f1-b441-2b33b063138f.png.webp 800w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/976\/cpsprodpb\/db83\/live\/16488620-d8e8-11f1-b441-2b33b063138f.png.webp 976w\" type=\"image\/webp\"><img decoding=\"async\" alt=\"Your Voice banner image. Your Voice is written in white against a purple background. \" loading=\"lazy\" src=\"https:\/\/260web.com\/news\/wp-content\/uploads\/2026\/11\/uRlhMF.png\" srcset=\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/db83\/live\/16488620-d8e8-11f1-b441-2b33b063138f.png 240w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/320\/cpsprodpb\/db83\/live\/16488620-d8e8-11f1-b441-2b33b063138f.png 320w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/480\/cpsprodpb\/db83\/live\/16488620-d8e8-11f1-b441-2b33b063138f.png 480w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/624\/cpsprodpb\/db83\/live\/16488620-d8e8-11f1-b441-2b33b063138f.png 624w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/800\/cpsprodpb\/db83\/live\/16488620-d8e8-11f1-b441-2b33b063138f.png 800w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/976\/cpsprodpb\/db83\/live\/16488620-d8e8-11f1-b441-2b33b063138f.png 976w\" width=\"1920\" height=\"316\" class=\"ssrcss-egie1y-Image edrdn950\"><\/picture><\/span><\/div>\n<\/figure>\n<\/div>\n<\/div>\n<\/div>\n<div data-block=\"uploaderEmbed\" class=\"ssrcss-vxwoax-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-126h8e-Spacer e1aon0op0\">\n<div class=\"ssrcss-krxbkn-Content e1hic64o1\">\n<div class=\"ssrcss-gcpv13-MessageWrapper ef7gnrf3\">\n<div>\n<h2 class=\"ssrcss-9c7t1e-Title ef7gnrf2\">Get in touch<\/h2>\n<div class=\"ssrcss-jqctwy-TextMessageContainer ef7gnrf0\">\n<div class=\"ssrcss-nqezkk-RichTextContainer e5tfeyi1\">\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">Do you have a mortgage, a credit card, a car finance agreement? How are interest rates affecting you?<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ssrcss-degjd4-CallToActionWrapper e1hic64o3\">\n<div class=\"ssrcss-1cfn5j5-NoJSWrapper e1hic64o2\">\n<div class=\"ssrcss-j1kual-LinkWrapper e1y5lbp30\"><span data-testid=\"participate:communication\" class=\"ssrcss-1o2hnls-IconWrapper esxl4sy0\"><svg viewBox=\"0 0 32 32\" width=\"1em\" height=\"1em\" class=\"ssrcss-xi5oyi-StyledIcon e161cein1\" focusable=\"false\" aria-hidden=\"true\"><path d=\"M1 25.1h18.8v-8.4l-7.3-.5v-5.7H1zm7.5-.4h-4v4.7H6zM31 17.9V2.6H11.5v15.3zm-2.4-2.4H14V5h14.6zm-5.1 2 2.5 4.7h1.5v-4.7z\" \/><\/svg><\/span><span class=\"call-to-action-link-text-wrapper\">Contact form<\/span><\/div>\n<\/div>\n<div class=\"ssrcss-1tbej63-ButtonWrapper e1qopuuw0\"><button width=\"content-length\" type=\"button\" class=\"ssrcss-qdg9z3-Button eoocusk1\"><span data-testid=\"participate:communication\" class=\"ssrcss-n1cfyp-IconWrapper eoocusk0\"><svg viewBox=\"0 0 32 32\" width=\"1em\" height=\"1em\" class=\"ssrcss-xi5oyi-StyledIcon e161cein1\" focusable=\"false\" aria-hidden=\"true\"><path d=\"M1 25.1h18.8v-8.4l-7.3-.5v-5.7H1zm7.5-.4h-4v4.7H6zM31 17.9V2.6H11.5v15.3zm-2.4-2.4H14V5h14.6zm-5.1 2 2.5 4.7h1.5v-4.7z\" \/><\/svg><\/span>Contact form<\/button><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-block=\"topicList\" class=\"ssrcss-vxwoax-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-tcr9z1-Spacer e1aon0op0\">\n<div data-testid=\"topic-list\">\n<div class=\"ssrcss-nj9heb-StyledTagContainer ed0g1kj1\">\n<div class=\"ssrcss-1pfbb52-TopicListHeaderWrapper etw6iwl0\">\n<h2 type=\"normal\" class=\"ssrcss-89o2pv-Heading e10rt3ze0\">Related topics<\/h2>\n<\/div>\n<div class=\"ssrcss-17ehax8-Cluster e1ihwmse1\">\n<ul role=\"list\" spacing=\"2\" class=\"ssrcss-w8zanw-ClusterItems e1ihwmse0\">\n<li>Personal finance<\/li>\n<li>Money<\/li>\n<li>Cost of Living <\/li>\n<li>UK economy<\/li>\n<li>Personal debt<\/li>\n<li>Mortgages<\/li>\n<li>Savings<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-block=\"promoList\" class=\"ssrcss-vxwoax-ComponentWrapper e1aon0op1\">\n<div class=\"ssrcss-tcr9z1-Spacer e1aon0op0\">\n<h2 type=\"normal\" class=\"ssrcss-89o2pv-Heading e10rt3ze0\">More on this story<\/h2>\n<ul class=\"ssrcss-1ughxsy-List e880cno1\">\n<li>\n<div data-testid=\"promo\" class=\"ssrcss-ccqz3i-Promo e1vyq2e80\">\n<div class=\"ssrcss-1u1fh10-PromoSwitchLayoutAtBreakpoints et5qctl0\">\n<div class=\"ssrcss-wg79iw-PromoContent exn3ah912\">\n<div spacing=\"2\" class=\"ssrcss-l0lt4o-Stack e1y4nx260\"><span role=\"text\"><\/p>\n<p class=\"ssrcss-1emzoi7-PromoHeadline exn3ah99\"><span aria-hidden=\"false\">What&#8217;s happening to UK interest rates and what does it mean for mortgages?<\/span><\/p>\n<p><\/span><\/div>\n<div spacing=\"2\" class=\"ssrcss-l0lt4o-Stack e1y4nx260\">\n<div>\n<ul role=\"list\" class=\"ssrcss-9tw7r1-MetadataStripContainer eh44mf03\">\n<div class=\"ssrcss-10q9h22-GroupChildrenForWrapping eh44mf02\">\n<li role=\"listitem\" class=\"ssrcss-sf7vdp-MetadataStripItem eh44mf01\">\n<div class=\"ssrcss-m5j4pi-MetadataContent eh44mf00\"><span class=\"ssrcss-1pvwv4b-MetadataSnippet e4wm5bw3\"><span class=\"ssrcss-61mhsj-MetadataText e4wm5bw1\">1 day ago<\/span><\/span><\/div>\n<\/li>\n<\/div>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ssrcss-z60stg-PromoImageContainer en81kx34\">\n<div class=\"ssrcss-17h6w1t-PromoImageContainerInner en81kx32\">\n<div class=\"ssrcss-fec6qv-ImageWrapper en81kx33\"><span class=\"ssrcss-17dzkp6-Placeholder etlorgc0\"><picture><source srcset=\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/dfe8\/live\/54e10600-3e38-11f1-929e-dd2b5d4dae7a.jpg.webp 240w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/320\/cpsprodpb\/dfe8\/live\/54e10600-3e38-11f1-929e-dd2b5d4dae7a.jpg.webp 320w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/480\/cpsprodpb\/dfe8\/live\/54e10600-3e38-11f1-929e-dd2b5d4dae7a.jpg.webp 480w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/624\/cpsprodpb\/dfe8\/live\/54e10600-3e38-11f1-929e-dd2b5d4dae7a.jpg.webp 624w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/800\/cpsprodpb\/dfe8\/live\/54e10600-3e38-11f1-929e-dd2b5d4dae7a.jpg.webp 800w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/976\/cpsprodpb\/dfe8\/live\/54e10600-3e38-11f1-929e-dd2b5d4dae7a.jpg.webp 976w\" type=\"image\/webp\"><img decoding=\"async\" alt=\"A woman uses a cash machine on the street on a sunny spring day. She holds a credit card in her hand and is pressing buttons on the machine with her other hand. \" loading=\"lazy\" src=\"https:\/\/260web.com\/news\/wp-content\/uploads\/2026\/11\/L51tZN.jpg\" srcset=\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/dfe8\/live\/54e10600-3e38-11f1-929e-dd2b5d4dae7a.jpg 240w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/320\/cpsprodpb\/dfe8\/live\/54e10600-3e38-11f1-929e-dd2b5d4dae7a.jpg 320w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/480\/cpsprodpb\/dfe8\/live\/54e10600-3e38-11f1-929e-dd2b5d4dae7a.jpg 480w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/624\/cpsprodpb\/dfe8\/live\/54e10600-3e38-11f1-929e-dd2b5d4dae7a.jpg 624w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/800\/cpsprodpb\/dfe8\/live\/54e10600-3e38-11f1-929e-dd2b5d4dae7a.jpg 800w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/976\/cpsprodpb\/dfe8\/live\/54e10600-3e38-11f1-929e-dd2b5d4dae7a.jpg 976w\" width=\"1920\" height=\"1079.681697612732\" class=\"ssrcss-egie1y-Image edrdn950\"><\/picture><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/li>\n<li>\n<div data-testid=\"promo\" class=\"ssrcss-ccqz3i-Promo e1vyq2e80\">\n<div class=\"ssrcss-1u1fh10-PromoSwitchLayoutAtBreakpoints et5qctl0\">\n<div class=\"ssrcss-wg79iw-PromoContent exn3ah912\">\n<div spacing=\"2\" class=\"ssrcss-l0lt4o-Stack e1y4nx260\"><span role=\"text\"><\/p>\n<p class=\"ssrcss-1emzoi7-PromoHeadline exn3ah99\"><span aria-hidden=\"false\">Your pay, energy bills and savings: How the Budget affects you<\/span><\/p>\n<p><\/span><\/div>\n<div spacing=\"2\" class=\"ssrcss-l0lt4o-Stack e1y4nx260\">\n<div>\n<ul role=\"list\" class=\"ssrcss-9tw7r1-MetadataStripContainer eh44mf03\">\n<div class=\"ssrcss-10q9h22-GroupChildrenForWrapping eh44mf02\">\n<li role=\"listitem\" class=\"ssrcss-sf7vdp-MetadataStripItem eh44mf01\">\n<div class=\"ssrcss-m5j4pi-MetadataContent eh44mf00\"><span class=\"ssrcss-1pvwv4b-MetadataSnippet e4wm5bw3\"><span class=\"ssrcss-61mhsj-MetadataText e4wm5bw1\">7 days ago<\/span><\/span><\/div>\n<\/li>\n<\/div>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ssrcss-z60stg-PromoImageContainer en81kx34\">\n<div class=\"ssrcss-17h6w1t-PromoImageContainerInner en81kx32\">\n<div class=\"ssrcss-fec6qv-ImageWrapper en81kx33\"><span class=\"ssrcss-1pflr6j-Placeholder etlorgc0\"><picture><source srcset=\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/84cd\/live\/e88146a0-d365-11f1-b441-2b33b063138f.jpg.webp 240w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/320\/cpsprodpb\/84cd\/live\/e88146a0-d365-11f1-b441-2b33b063138f.jpg.webp 320w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/480\/cpsprodpb\/84cd\/live\/e88146a0-d365-11f1-b441-2b33b063138f.jpg.webp 480w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/624\/cpsprodpb\/84cd\/live\/e88146a0-d365-11f1-b441-2b33b063138f.jpg.webp 624w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/800\/cpsprodpb\/84cd\/live\/e88146a0-d365-11f1-b441-2b33b063138f.jpg.webp 800w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/976\/cpsprodpb\/84cd\/live\/e88146a0-d365-11f1-b441-2b33b063138f.jpg.webp 976w\" type=\"image\/webp\"><img decoding=\"async\" alt=\"Stock photo shows couple loking at a computer and eating in a living room with a toddler in view.\" loading=\"lazy\" src=\"https:\/\/260web.com\/news\/wp-content\/uploads\/2026\/11\/uVaeMv.jpg\" srcset=\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/84cd\/live\/e88146a0-d365-11f1-b441-2b33b063138f.jpg 240w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/320\/cpsprodpb\/84cd\/live\/e88146a0-d365-11f1-b441-2b33b063138f.jpg 320w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/480\/cpsprodpb\/84cd\/live\/e88146a0-d365-11f1-b441-2b33b063138f.jpg 480w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/624\/cpsprodpb\/84cd\/live\/e88146a0-d365-11f1-b441-2b33b063138f.jpg 624w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/800\/cpsprodpb\/84cd\/live\/e88146a0-d365-11f1-b441-2b33b063138f.jpg 800w, https:\/\/ichef.bbci.co.uk\/ace\/standard\/976\/cpsprodpb\/84cd\/live\/e88146a0-d365-11f1-b441-2b33b063138f.jpg 976w\" width=\"1920\" height=\"1080\" class=\"ssrcss-egie1y-Image edrdn950\"><\/picture><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>Published at Thu, 05 Nov 2026 17:09:55 +0000<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Interest rates hiked to 4% in first increase in over three years Getty Images Michael Race,&nbsp;Business reporter&nbsp;and&nbsp;Kevin Peachey,&nbsp;Cost of living correspondent 5 November 2026, 00:00 GMT 2389 Comments Updated 3 hours ago Interest rates have risen for the first time in more than three years and the Bank of England has signalled a further increase&hellip; <a class=\"more-link\" href=\"https:\/\/260web.com\/news\/interest-rates-hiked-to-4-in-first-increase-in-over-three-years\/\">Continue reading <span class=\"screen-reader-text\">Interest rates hiked to 4% in first increase in over three years<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":5567,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5568","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk-politics","entry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/posts\/5568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/comments?post=5568"}],"version-history":[{"count":0,"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/posts\/5568\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/media\/5567"}],"wp:attachment":[{"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/media?parent=5568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/categories?post=5568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/260web.com\/news\/wp-json\/wp\/v2\/tags?post=5568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}