Bank of England Keeps Interest Rate Unchanged Amid Rising UK Inflation
The Bank of England's Monetary Policy Committee (MPC) met on September 16, 2026, and decided to maintain the main interest rate at 3.75%. The decision was made by a majority vote of 6-3, with three members voting for a 0.25 percentage point increase to 4%.
The committee cited the ongoing conflict in the Middle East as a contributing factor to higher crude and refined energy prices, which have increased volatility and remain above pre-conflict levels. The UK's Consumer Price Index (CPI) inflation rate rose to 3.1% in August and is expected to rise further over coming quarters.
The Bank of England aims to bring inflation down to 2% sustainably as the economy adjusts to the energy price increases. To achieve this goal, the MPC set out a multi-year path to reduce the stock of UK government bond purchases held for monetary policy purposes to zero through annual sales of £20 billion alongside maturing gilts.