UK interest rates: Bank Rate at 3.75%, Bank of England decision due Thursday

The interest rate set by the Bank of England (Bank Rate) affects the cost of mortgages and loans, and the interest on savings, for millions of people in the UK. The Bank explains that Bank Rate influences the level of all other interest rates in the country.

Where things stand

According to the Bank of England's website, Bank Rate is currently 3.75%. The Monetary Policy Committee (MPC) kept it at that level at, among others, its meeting on 17 September 2026. Decisions are made roughly every six weeks by a nine-member committee.

The next announcement is scheduled for Thursday 5 November 2026. The Bank will also publish its quarterly Monetary Policy Report that day.

Why the Bank is not cutting rates

In its latest statement the Bank pointed to the conflict in the Middle East. It has disrupted the transport and supply of energy, pushing up fuel prices and utility bills. The Bank notes that it is hard to predict what will happen next.

The Bank's assessment is that higher global energy prices have so far had a limited effect on prices and wages in the UK. This is being held back by, among other things, higher mortgage rates and firms' borrowing costs, which make people more cautious about spending. In addition, more people are looking for work than there are vacancies, so employers may feel less pressure to raise pay.

However, the Bank warns that the longer energy price volatility lasts, the greater its impact on inflation will be. In that case it may need to raise Bank Rate to bring inflation back to its 2% target.

What this means for you

Bank Rate does not automatically change your mortgage repayments, but it influences the deals offered by banks and building societies. People whose fixed-rate mortgage deal is ending soon, or who have a variable-rate mortgage, should follow the 5 November decision. It is also worth checking the terms with your own lender, as the details depend on your agreement. Higher rates usually also mean better interest on savings accounts, but that too depends on the bank's offer.

The level of rates also matters for anyone planning to buy a home or take out a loan. This is not financial advice, and specific decisions are best discussed with a mortgage adviser.