The current Bank of England base rate is 3.75% as of August 2026. At its latest meeting, the Monetary Policy Committee voted 6–3 to keep Bank Rate unchanged, with three members preferring an increase to 4%.
The next Bank of England base rate review is on 17 September 2026. Further decisions are scheduled for 5 November and 17 December 2026.
Although Bank Rate fell several times between August 2024 and December 2025, there have been no reductions so far in 2026. Inflation, energy prices, wage growth and labour market conditions will be important factors in deciding what happens next.
Last Updated: 29.08.2026
What Is The Current Bank Of England Base Rate?
The current Bank of England base rate is 3.75%.
Bank Rate has remained at this level since December 2025, when the Monetary Policy Committee reduced it from 4% to 3.75%.
At the most recent meeting ending on 29 July 2026, six MPC members voted to maintain the rate at 3.75%, while three preferred an increase of 0.25 percentage points to 4%.
The split vote is important because it shows that the debate has shifted from simply asking when rates will fall.
Policymakers are now balancing easing domestic inflation pressures against the possibility that higher energy prices could push inflation upwards again.
The Bank of England’s latest monetary policy decision confirms that Bank Rate remains at 3.75% and that the next decision is due in September.
For households, the base rate continues to influence borrowing costs, mortgage pricing and savings returns, although individual banks and building societies determine the rates they offer customers.
When Is The Next Bank Of England Interest Rate Decision?
The next Bank of England interest rate decision is scheduled for Thursday, 17 September 2026.
The remaining scheduled MPC decisions for 2026 are:
| Bank Of England Decision | Date |
| September Decision | 17 September 2026 |
| November Decision | 5 November 2026 |
| December Decision | 17 December 2026 |
The MPC does not have to change Bank Rate at every meeting. Members review the latest economic information before deciding whether the rate should rise, fall or remain unchanged.
This includes:
- Inflation Trends and whether price growth is moving sustainably towards the 2% target
- Wage Growth and whether rising pay is contributing to persistent inflation
- Employment Conditions including unemployment and labour market activity
- Economic Growth and the strength of household and business demand
- Energy Prices including oil, gas and electricity costs
- Global Developments that could affect UK prices and financial markets
With Bank Rate having remained at 3.75% throughout 2026 so far, each remaining meeting will be closely watched by mortgage borrowers, savers and investors.
How Often Does The Bank Of England Review The Base Rate?
The Bank of England’s Monetary Policy Committee normally announces eight scheduled interest rate decisions each year.
Meetings are usually separated by several weeks, allowing the committee to assess new economic data before making another decision.
The MPC consists of nine members who vote individually on Bank Rate. A majority determines the final decision, which means members do not always agree on the appropriate level.
The July 2026 meeting demonstrated this clearly. Six members supported keeping Bank Rate at 3.75%, while three wanted it increased to 4%.
The Bank can respond to exceptional circumstances outside its normal timetable if necessary, but scheduled meetings remain the standard process for setting UK monetary policy.
What Is The Base Rate And Why Does It Matter?
The Bank of England base rate is the official interest rate set by the Monetary Policy Committee.
It forms a key part of UK monetary policy and is primarily used to help bring inflation sustainably back to the Government’s 2% CPI inflation target.
Changes in Bank Rate affect the wider financial system because banks and other lenders use market interest rates and funding costs when deciding what to charge borrowers and pay savers.
Areas commonly influenced by Bank Rate include:
- Mortgage Rates
- Personal Loans
- Business Borrowing
- Credit Cards
- Savings Accounts
- Investment Markets
When Bank Rate rises, borrowing often becomes more expensive and saving can become more rewarding. When it falls, borrowing costs may decrease, while savings returns can also come under pressure.
These effects are not always immediate or identical because lenders make their own commercial decisions about customer interest rates.
How Do Changes In The Base Rate Affect Mortgages?
The effect of a Bank of England rate change depends heavily on the type of mortgage a borrower has.
Tracker mortgages are usually the most directly affected, while existing fixed-rate borrowers are protected from changes until their fixed period ends.
| Mortgage Type | Connection To Base Rate | If Bank Rate Rises | If Bank Rate Falls |
| Tracker Mortgage | Usually directly linked | Payments normally increase | Payments normally decrease |
| Fixed-Rate Mortgage | No direct change during fixed term | Existing payment normally stays the same | Existing payment normally stays the same |
| Standard Variable Rate | Set by lender | Lender may increase rate | Lender may reduce rate |
| Discount Mortgage | Linked to lender’s SVR | Payment may increase | Payment may decrease |
| Interest-Only Mortgage | Depends on underlying rate type | Monthly interest may increase | Monthly interest may decrease |
| Buy-To-Let Mortgage | Depends on product | Financing costs may increase | Financing costs may decrease |
Tracker Mortgages
Tracker mortgages usually follow the Bank of England base rate plus a fixed margin.
For example, a mortgage priced at Bank Rate plus 1.5 percentage points would have an interest rate of 5.25% when Bank Rate is 3.75%.
If Bank Rate increased to 4%, that tracker could rise to 5.5%. If Bank Rate fell to 3.5%, it could decrease to 5%, subject to the mortgage terms and any minimum-rate conditions.
This makes tracker mortgages particularly sensitive to MPC decisions.
Fixed-Rate Mortgages
A fixed-rate mortgage keeps the customer’s interest rate unchanged for an agreed period, commonly two or five years.
A Bank Rate change therefore does not normally alter monthly payments for someone already within their fixed term.
However, wider interest rate expectations can affect the price of new fixed mortgage deals. This means borrowers approaching the end of a fixed term should monitor the market before automatically moving onto their lender’s standard variable rate.
Standard Variable Rate Mortgages
A standard variable rate, commonly known as an SVR, is set by the mortgage lender.
It is not automatically tied to Bank Rate, meaning a lender can decide whether and when to adjust it.
SVRs are often higher than introductory fixed or tracker deals. Borrowers who reach the end of a mortgage deal may automatically move onto an SVR if they do not choose another product.
Discount Rate Mortgages
A discount mortgage provides a reduction from the lender’s standard variable rate.
If a lender has an SVR of 6% and offers a 1% discount, the customer would pay 5%.
Because the underlying SVR can change, the customer’s discounted rate can also move during the deal.
Interest-Only Mortgages
With an interest-only mortgage, monthly payments generally cover the interest rather than reducing the original capital balance.
If the mortgage uses a variable or tracker rate, higher interest rates can significantly increase monthly payments.
A lower rate can reduce monthly interest costs, but the original capital still needs to be repaid according to the mortgage agreement.
Buy-To-Let Mortgages
Landlords can also be affected by Bank Rate changes, particularly when using variable or tracker buy-to-let products.
Higher financing costs can reduce rental yields and profitability, while lower borrowing costs may improve margins.
Anyone comparing mortgage options can also review MoneyHelper’s information on mortgage interest rates, which covers fixed, tracker and standard variable mortgage arrangements.
How Does The Base Rate Affect Borrowing And Savings?
Bank Rate influences much more than mortgages.
Changes can gradually feed through to personal loans, business finance, credit cards and savings accounts.
| Financial Product | Higher Bank Rate | Lower Bank Rate |
| Tracker Mortgages | Payments usually rise | Payments usually fall |
| Variable Mortgages | Rates may rise | Rates may fall |
| Fixed Mortgages | Existing deal unchanged | Existing deal unchanged |
| Personal Loans | New borrowing may become more expensive | New borrowing may become cheaper |
| Credit Cards | Interest costs may increase | Interest costs may reduce |
| Savings Accounts | Returns may improve | Returns may decline |
For savers, higher Bank Rate can encourage banks to offer more competitive savings rates. However, financial institutions do not have to pass on every Bank Rate movement in full.
Borrowers face a similar situation. A Bank Rate reduction does not guarantee that every loan or mortgage product will immediately become cheaper.
What Economic Indicators Affect Bank Of England Rate Decisions?
The Bank of England considers a wide range of economic information when setting interest rates.
Inflation
Inflation is one of the most important factors because the MPC is responsible for maintaining price stability and bringing CPI inflation sustainably towards the 2% target.
The latest UK inflation figures from the Office for National Statistics show that CPI inflation increased to 2.9% in July 2026, compared with 2.6% in June.
That increase means inflation remains above the Bank’s 2% target and adds another factor for policymakers to consider before the September interest rate decision.
Wage Growth
Rapid wage growth can contribute to inflation when higher employment costs are passed on through prices.
The MPC therefore pays close attention to wage settlements and private-sector pay when assessing underlying inflationary pressure.
Employment
A weakening labour market can reduce wage and consumer spending pressures.
Conversely, a very tight labour market can support stronger wage growth and demand, potentially increasing inflationary pressure.
Economic Growth
Strong economic activity may support higher interest rates if demand is contributing to inflation.
Weak economic growth can create an argument for lower rates, particularly where inflationary pressure is also easing.
Energy Prices
Oil, gas and electricity costs can quickly affect household bills, transport costs and business expenses.
Energy price volatility has become particularly important during 2026 and has contributed to uncertainty surrounding the inflation outlook.
Could The Bank Of England Change Interest Rates Again In 2026?
Yes. Bank Rate could still increase or decrease before the end of 2026, but neither outcome is guaranteed.
The July MPC vote illustrates why the outlook is uncertain. Six members wanted to maintain Bank Rate at 3.75%, while three supported an increase to 4%.
Market participants surveyed by the Bank of England in July had a median expectation of 3.75% after the September, November and December 2026 MPC meetings. These expectations are useful indicators of market sentiment, but they are not promises from the Bank.
There are several possible scenarios.
If inflationary pressure weakens and economic activity remains subdued, the case for eventually reducing Bank Rate could strengthen.
If energy prices, wages or broader inflation pressures increase significantly, the Bank could keep rates higher for longer or consider raising them.
If the economic picture remains mixed, Bank Rate could simply stay at 3.75%.
Borrowers should therefore avoid making major financial decisions based solely on predictions of imminent rate cuts.
How Has The Bank Of England Base Rate Changed Since 2020?
Bank Rate has experienced unusually large movements since the start of the decade.
During the COVID-19 disruption in March 2020, Bank Rate was reduced to a historic low of 0.10%.
As inflation increased after the pandemic, the Bank began tightening monetary policy. Bank Rate rose from 0.10% to 0.25% in December 2021 and continued increasing until reaching 5.25% in August 2023.
It remained at 5.25% for approximately a year before the easing cycle began.
| Date | Bank Rate |
| March 2020 | 0.10% |
| December 2021 | 0.25% |
| August 2022 | 1.75% |
| June 2023 | 5.00% |
| August 2023 | 5.25% |
| August 2024 | 5.00% |
| November 2024 | 4.75% |
| February 2025 | 4.50% |
| May 2025 | 4.25% |
| August 2025 | 4.00% |
| December 2025 | 3.75% |
| August 2026 | 3.75% |
The direction since August 2024 has therefore been downward overall, with Bank Rate falling from 5.25% to 3.75%.
However, the easing process stopped after December 2025, and Bank Rate has remained unchanged throughout 2026 so far.
Should Homeowners Fix Their Mortgage Rate Now?
Whether someone should choose a fixed mortgage depends on their financial circumstances, attitude to risk and the deals available to them.
A fixed-rate mortgage can provide certainty because repayments remain stable during the fixed period.
That certainty can be valuable when the future direction of Bank Rate is unclear.
However, fixing also means a borrower may not immediately benefit if market mortgage rates fall substantially after the deal begins.
Homeowners considering a new fixed deal should look beyond Bank Rate alone and compare:
- Interest Rate charged by the lender
- Product Fees attached to the mortgage
- Early Repayment Charges
- Mortgage Term
- Loan-To-Value Ratio
- Total Cost Over The Deal Period
- Ability To Make Overpayments
Trying to predict the exact bottom of an interest rate cycle is difficult. Affordability and financial certainty are usually more practical considerations than attempting to time the market perfectly.
What Should You Do If You Are Remortgaging?
Borrowers approaching the end of a mortgage deal should start reviewing their options before the existing rate expires.
Many lenders allow customers to secure a new product several months before their current deal ends.
Starting early can provide time to compare products and avoid automatically moving onto a potentially more expensive standard variable rate.
Before remortgaging:
- Check When Your Current Deal Ends
- Review Any Early Repayment Charges
- Check Your Outstanding Mortgage Balance
- Review Your Property’s Approximate Value
- Compare Product Fees As Well As Interest Rates
- Consider Whether Your Circumstances Have Changed
- Check Whether A Product Transfer Or Remortgage Offers Better Value
Borrowers who secure a deal early may also want to check whether their lender allows them to move to a cheaper product before completion if market rates improve.
Where Can You Get Advice On Interest Rate Changes?
Bank Rate affects households differently, so general predictions about interest rates should not replace individual financial advice.
Homeowners and borrowers can consider speaking to:
- Regulated Mortgage Advisers for mortgage product comparisons
- Independent Financial Advisers for wider financial planning
- Existing Mortgage Lenders about available product transfers
- Debt And Money Advice Services if repayments are becoming difficult
Savers should also compare available accounts rather than assuming their existing provider will automatically offer a competitive rate after a Bank Rate change.
Conclusion
The next Bank of England base rate review takes place on 17 September 2026, with the current Bank Rate standing at 3.75%.
Rates have fallen considerably from their 5.25% peak in 2023, but the downward trend has paused during 2026. The latest MPC decision resulted in a 6–3 vote to hold Bank Rate, with three policymakers supporting an increase to 4%.
At the same time, UK CPI inflation rose from 2.6% in June to 2.9% in July 2026, while global energy prices remain an important source of uncertainty.
This means borrowers and savers should not assume that another cut is inevitable. The September, November and December MPC meetings will depend on how inflation, employment, wages, energy costs and economic activity develop.
For homeowners in particular, understanding how their individual mortgage responds to Bank Rate can be more useful than attempting to predict exactly what the MPC will do next.
FAQs
When Is The Next Bank Of England Base Rate Review?
The next Bank of England base rate decision is scheduled for 17 September 2026. Further decisions are due on 5 November and 17 December.
What Is The Current Bank Of England Base Rate?
The current Bank Rate is 3.75%. It has remained at this level since the Bank reduced it from 4% in December 2025.
Will The Bank Of England Cut Interest Rates Again In 2026?
A further cut is possible but not guaranteed. Inflation, energy prices, wages and economic conditions will determine whether the MPC believes another reduction is appropriate.
Could The Bank Of England Raise Interest Rates In 2026?
Yes. Three of the nine MPC members voted to increase Bank Rate to 4% at the July 2026 meeting, showing that a future rise cannot be ruled out.
How Often Does The Bank Of England Review Interest Rates?
The Monetary Policy Committee normally makes eight scheduled interest rate decisions each year, with meetings generally taking place several weeks apart.
What Happens To Mortgages When The Base Rate Changes?
Tracker mortgages generally move directly with the rate they track, while lenders decide how standard variable rates change. Existing fixed-rate mortgage payments usually remain unchanged until the fixed period expires.
Does A Lower Base Rate Reduce Savings Interest?
It can. Falling Bank Rate can put downward pressure on savings rates, although banks and building societies decide how much of any rate change they pass on to customers.
