Bank of England decides on rates on Thursday: what a hold, a rise or a cut would mean for you

What's happening

The Bank of England's Monetary Policy Committee (MPC) announces its next decision on Bank Rate on Thursday 5 November 2026, alongside its quarterly Monetary Policy Report. Bank Rate is currently 3.75%. It was cut to that level on 18 December 2025 and has been held there since, including at the June, July and September 2026 meetings.

The September vote was not unanimous. The MPC voted 6-3 to hold, and the three members who disagreed wanted a rise to 4%, not a cut. The Bank said that "risks to the inflation outlook are tilted to the upside" and that "The Committee stands ready to act as necessary."

Inflation has moved further from the 2% target since then. The Office for National Statistics says CPI inflation was 3.5% in the 12 months to September 2026. In September the Bank expected inflation to reach roughly 3.75% in the last three months of this year. The next inflation figures are due on 18 November.

We don't know what the MPC will decide, and nobody outside the committee does. Here's what each outcome would mean.

At a glance

• Decision: Thursday 5 November 2026, at noon.
• Bank Rate now: 3.75%, unchanged since December 2025.
• Inflation: 3.5% in September 2026, against a 2% target.
• Fixed-rate mortgages don't change until the deal ends, whatever the Bank does.
• Next decision after this one: Thursday 17 December 2026.

Who's affected

Tracker mortgages follow Bank Rate directly, usually from the next payment or the one after. Standard variable rate (SVR) mortgages are set by your lender, which often moves in line with Bank Rate but doesn't have to. Fixed-rate borrowers pay the same until their deal ends, but lenders' new fixed rates depend on what markets expect rates to do over the next few years, so they can move before and after any decision.

Savers with easy-access and variable-rate accounts may see rates change after a decision. Fixed-term savings are locked in. Your savings are protected up to £120,000 per person, per bank, building society or credit union by the Financial Services Compensation Scheme.

What each outcome would mean: a worked example

Take a £200,000 repayment mortgage over 25 years on a tracker at Bank Rate plus 1%, so 4.75% now. The monthly payment is about £1,140.23.

• Hold at 3.75%: nothing changes. The payment stays at about £1,140.23.
• Rise of 0.25 points to 4%: the tracker goes to 5%, and the payment to about £1,169.18. That's £28.95 a month more, or about £347 a year.
• Cut of 0.25 points to 3.5%: the tracker goes to 4.5%, and the payment to about £1,111.66. That's £28.57 a month less, or about £343 a year.

For savers, £10,000 in an easy-access account paying 3.5% earns about £350 a year before tax. If the rate moved 0.25 points either way, that would change by about £25 a year.

What to do now

1. Check your mortgage type on your latest statement or your lender's app: tracker, SVR or fixed, and when any deal ends.
2. If your fixed deal ends in the next six months, ask your lender or a broker about locking in a new rate now. Many lenders let you secure a deal months ahead and switch if rates fall.
3. If you're on an SVR, compare it with your lender's current deals. SVRs are usually much higher.
4. Check your savings rate. If your easy-access account pays well below the best rates, move it, whatever happens on Thursday.
5. Keep savings under £120,000 per banking licence so all of it is FSCS-protected.

Questions

What time is the announcement?

The Bank of England publishes its decisions at noon. The minutes and the Monetary Policy Report are published at the same time.

Why would the Bank raise rates when it cut them last year?

Inflation has risen since the cut. At the September meeting three of the nine members voted for a rise, saying the risks were tilted towards higher inflation. That doesn't mean a rise will happen, but it shows the committee is divided.

Will my tracker change straight away?

It depends on your lender. Most change the rate within a month or so of a decision. Your mortgage terms set out how much notice you'll get.

Ways to save

Whatever happens to rates, the cheapest money is money you don't spend. Before the Black Friday sales on 27 November, set a Christmas budget and stick to it, and check our store pages for codes before you buy.

Sources: Bank of England: Bank Rate, Bank of England: upcoming MPC dates, Bank of England: Monetary Policy Summary, September 2026, ONS: consumer price inflation, FSCS: check your money is protected