The Bank of England's Monetary Policy Committee (MPC) has decided to maintain the Bank Rate at 3.75% following its meeting ending on 16 September 2026. Six members voted to keep the rate unchanged, while three members voted for a 0.25 percentage point increase to 4%.
The decision comes as UK CPI inflation increased to 3.1% in August and is projected to rise further in the coming quarters. The MPC noted that protracted conflict in the Middle East has contributed to further increases in crude and refined energy prices, which remain volatile and higher than pre-conflict levels.
The Committee judged that risks to the inflation outlook are tilted to the upside, more so than at the time of the July Monetary Policy Report. However, there has been little evidence of material second-round effects in price and wage-setting so far.
Separately, the MPC also voted unanimously to reduce the stock of UK government bond purchases held for monetary policy purposes to zero. This will be implemented through a multi-year plan, unwinding the remaining stock at an annual average pace of £46 billion by the end of 2034, via annual sales of £20 billion alongside maturing gilts.