UK interest rates: Bank of England expected to raise them for first time in over three years
Policymakers at the Bank of England are expected to raise interest rates on Thursday in what would be the first increase to the benchmark rate for more than three years.
TL;DR
- The Bank of England is expected to increase interest rates for the first time in over three years on Thursday.
- The benchmark rate is predicted to rise from 3.75% to 4%.
- Rising inflation, largely due to petrol and diesel costs, is the primary driver for the expected rate hike.
- The increase will likely raise borrowing costs for individuals and businesses, while benefiting savers.
- Millions of tracker mortgage holders and those on variable deals could see their monthly repayments increase.
- Fixed-rate mortgage deals are already reflecting expectations of rate rises, impacting future borrowers and those remortgaging.
- The Consumer Prices Index (CPI) inflation rate was 3.5% in the year to September 2026, above the Bank's 2% target.