The Bank of England raised Bank Rate by a quarter of a point, from 3.75% to 4%, on 5 November 2026. It was reported as the first increase since 2023, with inflation at 3.5% in September, well above the Bank’s 2% target.
What it means if you avoid interest
Islamic banks don’t pay interest, so Bank Rate doesn’t set their rates directly. But they compete for the same savers and fund themselves in the same markets, so expected profit rates and home purchase plan rental rates tend to move the same way over time. Nothing changes automatically on a fixed term you already hold.
- Savers: watch for new fixed-term rates. Today’s rates are checked each morning.
- Home purchase plans: a fixed rental rate stays fixed for the fixed period. Variable rates can change, so read any letter from your provider.
- Coming off a fix soon: diary a check at least three months ahead.
What happens next
The next decision is due on 17 December 2026.
- Professional Adviser
- STV News
- Unbiased
- The Bank of England’s own statement is at bankofengland.co.uk
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News, not advice. We report what has happened and what it may mean in general. Check how it affects you with your provider or a qualified adviser.
