The macro backdrop
Anna Macdonald, Investment Strategy Director:
“Inflation rose from 3.1% to 3.5% in September, while GDP growth remained robust at 2.1%, ahead of expectations. That leaves the Bank of England in a tricky spot. Inflation is still well above its 2% target, and the Bank needs to stop it becoming embedded through 'second-round effects', such as higher wage demands feeding into business costs and further price rises.
“It’s also hard to square a 'breathing room' Budget with higher interest rates taking some of that room away. Measures intended to ease pressure on household finances can feel less generous if borrowing costs rise at the same time.
"That said, a change in Bank Rate doesn't feed straight through to every borrower. Existing fixed-rate borrowers are sheltered until their deal ends, while those on trackers or variable rates are more directly exposed. Fixed-rate mortgages dominate new lending and are priced off swap rates rather than simply today's Bank Rate, so market expectations for future rates matter as much as the Bank's latest decision."
What the rate rise means for savers
Helen Morrissey, head of retirement analysis:
“Interest rates have risen, and savers stand to benefit if they’re willing to put in a little effort. The savings market was already fiercely competitive, and today’s hike will likely push rates higher still. Anyone with cash in a low-paying high street account has even more reason to switch: our research shows the average easy-access rate across the big four banks is just 0.95%1, well below inflation. Keeping track of the best rates is time-consuming, but a savings aggregator can do the legwork and give you confidence you aren’t missing out on a good deal.
“Keep a close eye on how much interest you’re earning, too. Go over your personal savings allowance and you’ll pay tax on the excess – and the rates are going up next year. If you think a bill is coming, Cash ISAs shelter your money from tax on savings interest and Stocks and Shares ISAs offer valuable protection from capital gains and dividend taxes.
"Ready to dip a toe into a Stocks and Shares ISA but not sure where to start? A money market fund could be a good first step, and HL recently launched its own. These funds invest in short-term debt from governments, banks and companies with strong credit ratings, and are seen as a lower-risk investment. They aim to deliver a return slightly above cash, though their value can fluctuate. They could be a good short-term home for your cash while you decide where else to invest."
Notes to editors
About Active Savings and the HL Cash ISA
Active Savings is Hargreaves Lansdown's cash savings service. It lets clients manage their cash alongside their investments under one login.
Clients can access easy access, limited access and fixed-term products from more than 30 banks and building societies through a single online account. They don't need to open a new account with each provider.
The HL Cash ISA lets savers manage their Cash ISA portfolio across multiple banks within one account.
HL also offers a co-branded Cash ISA, which sits alongside its wider range of exclusive and market-leading rates. It currently offers an easy access rate of 4.52%.
About the HL Money Market Fund
The HL Money Market Fund launched on 4 November 2026 and is available exclusively to HL clients.
It has the lowest ongoing charge of any MMF in the UK retail market, at 0.06%, or 60p a year for every £1,000 invested.
It targets a market-leading yield. The expected yield is 3.96% – variable and not guaranteed.
Clients can sell before 9.00am and have the money in their HL account the same day, ready to reinvest or withdraw.
Available across all HL investment accounts, including the Stocks and Shares ISA, Lifetime ISA, Junior ISA, SIPP, SIPP Drawdown, Junior SIPP and Fund and Share Account.
Account charges and dealing charges apply. Full detail is available on the
Footnotes
HL analysis of instant access rates across the UK's four biggest banks (Lloyds, Barclays, NatWest and HSBC), which averaged 0.95% as at 4 November 2026.