UK Inflation Is Forecast to Peak at 4.9%. A Fixed Mortgage Did Not Move.

The Bank of England raised its benchmark rate on Thursday, Nov. 5, from 3.75% to 4%, the first increase in more than three years, the BBC reported. Governor Andrew Bailey pointed to the Middle East war and energy prices as the main factor for decisions still ahead.

The Bank's forecast, as the BBC described it, has inflation peaking next year at 4.9%, and it could go higher if conditions worsen. Bailey said the sharp drop in oil prices after the U.S. midterms would not have changed Thursday’s decision, although it matters for his view from here. He also said the increase should not be read as the start of an inevitably long series of hikes. For now, the BBC reported few signs that higher energy prices are feeding into other goods and services.

An existing fixed-rate UK mortgage stays on its contract. The live report did not publish a new household payment or a U.S. loan change.

Did Thursday’s UK hike reset a fixed mortgage you already have? No change to an existing fixed payment was announced. The new facts are a 4% benchmark and a forecast that inflation could peak at 4.9% next year.