City Confidential

5 November 2026

The Bank of England has responded to rising concerns over inflation by raising interest rates today to 4% – up 25 basis points.  The increase was largely expected but it is interesting that while 8 members of the Monetary Policy Committee (who make the decision) voted for a quarter point rise, one member wanted a 0.5% increase in rates.  This is the first rise in rates for over three years but further increases are likely going forward although probably not until next year.  The effect on shares has been muted as the increase was already factored in.