Pound Hits Highest Level Since the Brexit Vote

The British pound hit its strongest level since the 2016 Brexit vote on November 4, 2026. Traders bet on a Bank of England rate rise, which came the next day.

Key Points

• A Bank of England index of the pound reached 86.4, its highest since June 2016.
• The Bank of England raised its main interest rate from 3.75% to 4%.
• Borrowers with tracker mortgages may pay more each month.

Pound Hits Highest Level Since Brexit Vote

The pound gained against a basket of 18 other currencies, radio station Leading Britain’s Conversation (LBC) reported. The Bank of England’s sterling index reached 86.4 on Wednesday, November 4.

That was its strongest reading since the Brexit referendum on June 23, 2016, when the index stood at 87.4. For comparison, it fell as low as 73.1 in March 2020.

Against the dollar, the pound slipped to about $1.346 after the rate decision. Against the euro, it held near 1.20 euros.

Why the Pound Rose

Traders bought pounds ahead of an expected rate rise. Higher interest rates can make a currency more attractive to investors.

When a country pays more interest on savings and bonds, global investors often want its currency. That extra demand can push the price up.

The dollar also weakened after the American midterm elections, the radio station reported. Worries about France’s public finances weighed on the euro at the same time.

The Bank of England Raises Rates

On Thursday, November 5, the Bank of England raised its main rate by 0.25 percentage points to 4%. It was the first increase in more than three years.

Eight members of its rate-setting committee voted for the rise. One member, Catherine Mann, wanted a bigger half-point increase.

The bank pointed to rising energy prices linked to conflict in the Middle East. It warned that higher costs could spread to wages and other prices.

Consumer price inflation rose to 3.5% in September. The bank expects it to climb to about 4.5% early next year.

What It Means for Your Money

Higher rates affect many households. Borrowers on tracker mortgages face a typical rise of about 30 pounds a month, the station reported.

Savers may get slightly better returns on some accounts. It is worth checking whether your bank passes on the higher rate.

The bank now expects inflation to peak near 5% next year. That means prices for many goods could keep rising for a while.

A stronger pound can help people traveling abroad. Their money may buy more euros or dollars. Our guide on how to save money on holiday travel shares more tips.

Where to Track Rates

The Bank of England lists its latest decision on its Bank Rate page. The Office for National Statistics publishes official inflation figures each month.

Planning ahead can soften rate changes. Our guide to financial goals for 2027 can help you set a budget.

This article is for information only and is not financial advice.

Frequently Asked Questions

Why did the pound rise?

Traders expected a Bank of England rate rise. The dollar and euro also weakened for separate reasons.

What is the Bank of England’s interest rate now?

It is 4%, after a 0.25 percentage point rise on November 5, 2026.

Will mortgage payments go up?

Tracker and variable mortgages often rise soon after a rate increase. Fixed deals stay the same until they end.

Editor’s Note

This story is accurate as of November 6, 2026. Exchange rates move every minute. Check a live source before you exchange money or make financial plans.

Spot an error in this article? Please contact us at support@digieh.com or read our Corrections Policy.

D

Keep exploring

Your next read is waiting

Surprise me

1BusinessUber Plans to Grow Its Robotaxi Fleet Fast4 min read2Food & LifestyleHow to Store Fresh Herbs So They Last8 min read3EntertainmentHow to Start Drawing as a Beginner8 min read4SportsHow to Start Walking for Fitness: Beginner Plan8 min read5NewsAmerica Hits a New Record for Energy Production4 min read6HealthRaw or Powdered Turmeric? What the Science Says4 min read