<p>Bank’s decision goes contrary to analysis from Office for Budget Responsibility that predicts lower inflation and little impetus for wage growth</p><ul><li><p><a href="https://www.theguardian.com/business/2026/nov/05/bank-of-england-raises-interest-rates-first-increase-for-more-than-three-years"><strong>Bank of England raises interest rates to 4%</strong></a></p></li><li><p><a href="https://www.theguardian.com/business/live/2026/nov/05/bank-of-england-interest-rate-decision-pound-inflation-oil-iran-stock-markets-latest-news-updates"><strong>Business live – latest updates</strong></a></p></li></ul><p>An interest rate rise by the Bank of England to 4% is a big call when households are suffering from a second <a href="https://www.theguardian.com/business/cost-of-living-crisis">cost of living crisis</a> in four years.</p><p>Many people will be incredulous when they hear of the decision to increase the cost of borrowing by 0.25 percentage points, looking around their neighbourhood for signs of a booming economy.</p> <a href="https://www.theguardian.com/business/2026/nov/05/interest-rate-rise-in-midst-of-cost-of-living-crisis-will-leave-many-incredulous">Continue reading...</a>
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Interest rate rise in midst of cost of living crisis will leave many incredulous
<p>Bank’s decision goes contrary to analysis from Office for Budget Responsibility that predicts lower inflation and little impetus for wage growth</p><ul><li><p><a href="https://www.theguardian.com/business/2026/nov/05/bank-of-england-raises-interest-rates-first-increase-for-more-than-three-years"><strong>Bank of England raises interest rates to 4%</strong></a></p></li><li><p><a href="https://www.theguardian.com/business/live/2026/nov/05/bank-of-england-interest-rate-decision-pound-inflation-oil-iran-stock-markets-latest-news-updates"><strong>Business live – latest updates</strong></a></p></li></ul><p>An interest rate rise by the Bank of England to 4% is a big call when households are suffering from a second <a href="https://www.theguardian.com/business/cost-of-living-crisis">cost of living crisis</a> in four years.</p><p>Many people will be incredulous when they hear of the decision to increase the cost of borrowing by 0.25 percentage points, looking around their neighbourhood for signs of a booming economy.</p> <a href="https://www.theguardian.com/business/2026/nov/05/interest-rate-rise-in-midst-of-cost-of-living-crisis-will-leave-many-incredulous">Continue reading...</a>