The Bank of England’s Monetary Policy Committee voted 6–3 to keep Bank Rate unchanged at 3.75% at its September 16, 2026 meeting, in line with market expectations. Three members preferred a 25-basis-point increase to 4%, the same as at the July meeting. The MPC said prolonged conflict in the Middle East has pushed crude and refined energy prices higher and increased volatility, contributing to a rise in UK CPI inflation to 3.1% in August, with further increases expected in coming quarters. The Committee stressed that policy must ensure inflation returns sustainably to the 2% target while assessing the scale and duration of the energy shock. So far, there is limited evidence of significant second-round effects on wages and prices, although the risk could increase if energy costs remain elevated. The MPC also unanimously agreed to reduce its stock of government bond purchases to zero through a multi-year programme, unwinding holdings at an average annual pace of £46 billion through 2034. source: Bank of England
The benchmark interest rate in the United Kingdom was last recorded at 3.75 percent. Interest Rate in the United Kingdom averaged 7.00 percent from 1971 until 2026, reaching an all time high of 17.00 percent in November of 1979 and a record low of 0.10 percent in March of 2020. This page provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. United Kingdom Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2026.
The benchmark interest rate in the United Kingdom was last recorded at 3.75 percent. Interest Rate in the United Kingdom is expected to be 3.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the United Kingdom Interest Rate is projected to trend around 4.00 percent in 2027 and 3.50 percent in 2028, according to our econometric models.