Bank of England Holds Base Rate at 3.75% Amid Rising Inflation Fears

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

Consumer price inflation increased to 3.1% in August 2026 from 2.9% in July, driven by higher and volatile energy costs.

The Bank's Monetary Policy Committee voted 6-3 to keep the rate at 3.75%, with three members backing a 0.25 percentage-point increase to 4%. The prolonged conflict in the Middle East has contributed to higher crude and refined energy prices, leading policymakers to focus on bringing inflation back towards the 2% target.

Mortgage borrowers will not see an immediate change in repayments due to the base-rate hold, but market expectations point to a possible rate increase in November. MoneySavingExpert reports that typical standard variable rates are around 6-7%, while leading two- and five-year fixed deals start at around 4.6-4.7%.

Savers can expect little change, with top easy-access savings still paying over 4% and some accounts offering 5% or more. However, rates can fluctuate, so it's essential to check existing account rates against current offerings.