Most economists expect a Bank Rate rise on 5 November. In a Reuters poll published on 15 October, 54 of 63 economists said they expect the Bank of England to raise Bank Rate from 3.75% to 4%. If you are borrowing to start a business, one rate will not move: a Start Up Loan is fixed for its whole term.
01What the Reuters poll found
Reuters polled 63 economists between 12 and 14 October.
Of those, 54 expect a rise of 0.25 percentage points at the Bank's next decision. Nearly half, 30 of 61, expect one more rise in the first three months of 2027.
According to the poll, inflation is forecast to average 3.6% this quarter and 3.8% next. The Bank of England puts current inflation at 3.1%, against its 2% target.
This is a poll, not a decision. The Monetary Policy Committee announces its decision on 5 November.
02What a Bank Rate rise usually changes
Bank Rate is the rate the Bank of England sets for the economy. Many lenders link their variable rates to it.
So if you have an overdraft or a loan on a variable rate, your repayments can go up after a rise. A fixed-rate loan stays the same until it ends.
03Why a Start Up Loan stays at 7.5%
A Start Up Loan has a fixed interest rate of 7.5% a year. That is a 7.8% representative APR. The rate is set when you take out the loan, and it stays the same for the whole term.
A Bank Rate rise does not change the rate on your loan. Your monthly repayment is the same from the first payment to the last.
Representative example: £10,000 over 60 months at 7.8% APR, monthly payments £200.45, total interest £2,027, total repayment £12,027.
You can borrow from £500 to £25,000 per founder, over one to five years. There are no arrangement fees and no penalty for paying the loan off early. Our help page on the interest rate and whether it can change has more detail, and our Start Up Loans rate and eligibility guide covers who can apply.
04What to do next
There is no need to rush an application because of the November meeting. Apply when your plan is ready.
The part you control is the paperwork. myplan builds your business plan, personal survival budget and 12-month cash flow forecast by asking plain questions. The workbook takes around 30 minutes, and it is free for every bizbritain applicant.
Most applicants are approved within one to two weeks of submitting a finished application. Timing still depends on any further information needed and on our finance partner's final checks.
To see whether you qualify, read our page on applying for a Start Up Loan.
