Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
Bank Rate
The main interest rate set by the Bank of England, which influences rates on borrowing and saving.
Key term
What it means
Bank Rate is an interest rate the Bank of England sets and pays on balances held with it by eligible banks and other financial institutions. It helps set short-term interest rates elsewhere in the economy. When Bank Rate changes, lenders and savings providers often change the rates they offer customers, but your own mortgage or savings rate is not automatically the same rate. For instance, a fixed-rate mortgage normally keeps its agreed rate until that fixed period ends.
Example
If the Bank of England raises Bank Rate, a bank may later offer higher rates on new mortgages or savings accounts. Someone partway through a fixed-rate mortgage may see no immediate change to their monthly payment.
Why it matters
It is the main rate behind many interest-rate headlines, but the effects on households differ by their loans, savings and contract terms.
Also known as
Bank of England base rate
base rate
Related terms
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Government bond yield
The return a buyer expects from a government bond at its current price, usually shown as a yearly percentage.
Read more -
Inflation
A general rise in prices over time.
Read more -
Monetary policy
Decisions by a central bank about interest rates and other tools to influence spending and the pace at which prices rise.
Read more -
Mortgage affordability
Whether a household can manage the payments on a home loan alongside its other costs.
Read more -
Quantitative easing
A central bank creating electronic money to buy bonds, aiming to lower longer-term borrowing costs and support spending.
Read more -
Real interest rate
An interest rate adjusted for the change in prices, showing what borrowing or saving costs in purchasing power.
Read more
Keep in the loop
News
Highlights from about the UK economy, the UK government and the UK public sector.
Mortgage relief will have to wait a little longer
Wednesday 4 November 2026
Interest rates are staying at 3.75%, so households with mortgages and other borrowing may have to wait longer for costs to come down.
Energy bills are going up as winter approaches
Wednesday 4 November 2026
A higher energy price cap means many households will be paying more to heat and power their homes during the colder months.
Guides and insights
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Clear, accessible analysis of the economic issues shaping everyday life
Living standards
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Comparing the cost of everyday life across generations, from bread and beer to buying a home.
Food & prices
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How farming, energy, transport and supermarket competition shape the price on the shelf.
Prices & inflation
Inflation is falling. What happens next?
What slower price rises mean for wages, purchasing power and economic recovery.
Shared prosperity
What would shared prosperity look like?
Beyond GDP: how we could measure economic success through security, opportunity and living standards.
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