Bank of England and Reserve Bank of Australia raise rates
The Bank of England raised Bank Rate to 4% on an 8–1 vote, its first increase since 2023, and expects inflation near 5% by mid-2027. The Reserve Bank of Australia raised its cash rate to 4.85% on a 6–3 vote and named AI investment as a source of price pressure.
Source published · In the Weekly Review of 8 November 2026
Filed under Economy
Catherine Mann voted for a half-point rise at the Bank of England. The committee said it had seen limited knock-on effects on wages and other prices, stressed that policy is not on a pre-set path and will decide next on 17 December.
The Reserve Bank of Australia now expects inflation to reach the top of its 2–3% range only in late 2027, about three quarters later than before. It cited fuel prices tied to the Middle East conflict, tight capacity and rapid price growth in technology goods driven by AI-related investment, an unusual channel for a central bank to name.