Economy

UK interest rates increase expected after services sector activity accelerates

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 04/11/2026, 14:35:27 UTC.

Briefings

The Bank of England is expected to raise interest rates on Thursday following an S&P Global survey showing the UK services sector reached an eight-month high in October. This growth was driven by spending on artificial intelligence, though it was offset by input price inflation that accelerated to a five-month high. The survey indicates businesses regained momentum lost after the Iran war began, but also felt the impact of rising costs.

Key points

• The Bank of England is expected to raise interest rates on Thursday following an S&P Global survey showing the UK services sector reached an eight-month high in October.
• This growth was driven by spending on artificial intelligence, though it was offset by input price inflation that accelerated to a five-month high.

Context

An S&P Global survey of the UK services sector in October showed businesses regained much of the momentum they lost after the start of the Iran war, but also felt the impact of a renewed spurt of input price inflation, which accelerated to a five-month high.

Limitations

The evidence is from a single survey conducted in October 2026, with data limited to the services sector. The Bank of England's decision is expected on Thursday, but the specific rate increase amount is not disclosed. The survey does not provide data on the full economy or other sectors, and the impact of the Iran war is described as a lost momentum rather than a specific economic event.

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