Bank of England Holds Base Rate at 3.75% Amid Inflation Concerns

The Bank of England has maintained its base rate at 3.75% for the sixth time in a row, despite rising inflation concerns.

The latest data revealed consumer price inflation increased to 3.1% in August 2026 from 2.9% in July, with higher and volatile energy costs contributing to economic policymakers' worries.

The Bank's Monetary Policy Committee voted 6-3 to keep the rate at 3.75%, while three members backed a 0.25 percentage-point increase to 4%. The prolonged conflict in the Middle East has led to increased crude and refined energy prices, with inflation likely to rise further over coming quarters.

Mortgage borrowers will see no immediate change to repayments, but a base-rate hold does not guarantee lower mortgage rates, as market expectations and swap rates also influence pricing. Savings rates have essentially remained unchanged from 3.75% previously, with top easy-access accounts still paying over 4%.