The Newshound

Homeowners are braced for the first interest rate hike since 2023 today as services firms start hiring again

Britain's services PMI rose to 52.8 in October 2026, up from 52.1 in September, its highest reading since February, as the composite PMI also climbed to 52.9.
Britain's services PMI rose to 52.8 in October 2026, up from 52.1 in September, its highest reading since February, as the composite PMI also climbed to 52.9.

The Bank of England's monetary policy committee looks set to raise rates by 0.25 percentage points on Thursday, pushing the base rate to 4% — the first such move since 2023. The UK services sector's PMI climbed to 52.8 in October, its strongest reading since February, powered by AI investment and a recovery in new orders. S&P Global's Tim Moore says the figures point to 'near-certainty' of a November hike and raise the prospect of 'further policy tightening into 2027'.

Services companies began hiring again for the first time in more than two years, drawing a line under a prolonged jobs contraction driven by higher taxes and surging wage costs.

Input cost inflation reached a five-month peak, with energy, fuel, transport and raw material prices all moving higher — leaving the Bank with little justification for holding rates steady.

Pantheon Macroeconomics argues that mounting price pressures mean 'all roads lead to multiple hikes over the coming months unless energy prices tank'.

Moremarketscreener.comUK rate hike seen as services growth accelerates to eight-month highforexfactory.comUK service sector growth accelerates to eight-month high - Forex FactoryYahoo News UKUK services growth hits eight-month high in Octoberkelofm.comUK services growth hits 8-month high in October, PMI showsThe GuardianUK interest rates increase expected after services sector activity acceleratesLBCGrowth in UK’s services industry ends two-year period of job cuttingLondon Business NewsUK services growth hits eight-month high as hiring resumes after two-year jobs slump - London Business NewsSharecastGrowth in UK services sector hits eight-month high in OctoberCity A.M.Bank of England set for ‘further interest rate hikes’ as businesses boost jobs
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