CBI responds to latest MPC interest rates (November 2026)

“The Monetary Policy Committee has raised interest rates for the first time in over three years as its patience with the global energy shock finally runs out. With inflation set to exceed 4% early next year, the Committee is looking to prevent higher energy costs from feeding into more persistent domestic price pressures – particularly through wage growth and household expectations of inflation. Resilient economic growth and signs of stabilisation in the labour market have also added to inflation risks. 

“The question now is where the Committee goes from here. Persistently high inflation means another rate rise cannot be ruled out.  That could prove challenging with interest rates already weighing on economic activity, while tighter financial conditions are doing some of the Bank’s work for it. 

“Either way, households and businesses face higher borrowing costs in the near term. That is a bitter pill to swallow, but one the MPC will see as necessary to prevent a more prolonged inflation shock and lasting damage to living standards.”