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Bank Rate has been at 3.75% since December 2025. Since then, the Bank of England’s Monetary Policy Committee (MPC) has voted to keep it unchanged at six consecutive meetings.
But while the rate itself hasn’t moved, the economic picture around it has. At the start of the year, some MPC members were pushing for another cut. More recently, some have been voting to raise rates.
For savers, that matters. Bank Rate can influence savings rates, but so can expectations about where interest rates might go next. So a period of no change from the Bank doesn’t necessarily mean savings rates will stand still too.
How we got to 3.75%
The Bank of England (BoE) cut Bank Rate from 4% to 3.75% in December 2025, its sixth cut since rates peaked at 5.25% in 2024.
At the time, inflation was falling faster than expected, while pay growth and services inflation were easing. The Bank also pointed to subdued economic growth and growing slack in the labour market.
The direction of travel appeared relatively clear. BoE said that, based on the evidence at the time, Bank Rate was likely to continue on a gradual downward path – although further cuts would become a closer call.
And in February, another cut came close.
February: another cut looked possible
At its February meeting, the MPC voted 5–4 to keep Bank Rate at 3.75%.
Four of the nine members wanted to cut it to 3.5%.
BoE expected inflation to fall back to around its 2% target from April, while pay growth and services inflation were continuing to ease. Economic growth remained subdued and the labour market was loosening.
At that point, another rate cut looked possible. Then the economic picture changed.
March: the outlook changes
Conflict in the Middle East led to a sharp rise in global energy and other commodity prices.
In its March decision, BoE said this would affect household fuel and utility prices, as well as businesses’ costs. Oil and gas prices had risen significantly and the near-term outlook for inflation had become much more uncertain.
That created a difficult balancing act for the MPC.
Higher energy prices can push inflation up directly through things such as fuel and household energy bills. They can also feed into the prices of other goods and services as businesses face higher costs.
But there’s another side to the equation. Higher energy costs can leave households with less money to spend elsewhere and weigh on economic activity.
In other words, the same shock can push inflation higher while weakening the economy.
Faced with that uncertainty, all nine MPC members voted to keep Bank Rate at 3.75% in March.
From votes for cuts to votes for rises
Bank Rate hasn’t changed since December, but the way MPC members have voted has:
- February: four members wanted to cut Bank Rate to 3.5%
- March: all nine members voted to keep it at 3.75%
- April: one member wanted to raise Bank Rate to 4%
- June: two members wanted to raise it to 4%
- July: three members wanted to raise it to 4%
By the Bank’s July meeting, the vote to hold Bank Rate had narrowed to 6–3.
That marks a notable shift. In February, four MPC members wanted rates lower. Five months later, three wanted them higher.
So why hasn’t the Bank raised rates?
Because the inflation picture remains mixed.
The energy shock has created renewed inflationary pressure, but other parts of the economy have continued to point in the opposite direction.
At its June meeting, the Bank said global energy prices had fallen from earlier levels but remained above where they were before the conflict and continued to be volatile.
At the time of the July MPC meeting, the latest available data showed CPI inflation had fallen to 2.6% in June. The Bank expected inflation to rise later in the year as the effects of higher energy prices continued to pass through to consumer prices. Since then, CPI inflation rose to 2.9% in July and, according to the latest ONS figures, reached 3.1% in August.
At the same time, the labour market has continued to loosen and demand has remained soft.
The MPC therefore faces risks in both directions. If inflationary pressures persist, keeping rates too low could make it harder to return inflation sustainably to the Bank’s 2% target. But if those pressures fade and the economy weakens, higher rates could put additional pressure on households and businesses.
That helps explain why Bank Rate has remained at 3.75% despite a significant change in the risks surrounding it.
What does this mean for savers?
After six consecutive holds, it might be tempting to assume savings rates won’t change either. But Bank Rate is only one of the factors banks consider when setting savings rates. Expectations about where interest rates might go next can also affect pricing.
That means waiting for the next Bank of England announcement doesn’t necessarily mean you’ll get a better savings rate.
Instead, it can be useful to focus on what you can control: what rate your savings are earning now, how much access you need to your money, and what type of account suits your plans.
For example, a variable savings rate can move up or down over time.
A tracker savings account is linked to a reference rate, such as Bank Rate. If that reference rate changes, the savings rate changes according to the terms of the account.
A Fixed Term Deposit works differently. You lock in a rate for an agreed period, giving you certainty over the rate you’ll earn for the term. In return, you can’t access your money until the term ends, except in limited exceptional circumstances.
The right approach depends on what you need from your savings. Rather than trying to predict the MPC’s next vote, it’s worth understanding the trade-offs and checking whether your money is still in the right place for you.
What happens next?
At its September meeting, the Bank of England held Bank Rate at 3.75% once again. Six MPC members voted to keep it unchanged, while three voted to raise it to 4% – the same split as July.
Inflation has continued to rise, with the latest ONS figures showing CPI inflation reached 3.1% in August, up from 2.9% in July. BoE said energy prices had risen further since its previous meeting and judged that the risks to the inflation outlook had shifted further to the upside.
However, the picture remains mixed. The Bank said there has so far been little evidence of significant knock-on effects on wages and prices, while labour market conditions remain soft.
The next Bank Rate decision is due on 5 November 2026. Until then, the MPC will continue to assess how persistent the energy shock proves to be, alongside inflation, wages, the labour market, and wider economic activity.
The past few months show how quickly the outlook can change even when Bank Rate itself doesn’t. In February, four MPC members thought Bank Rate should be lower. By July, three thought it should be higher – and those three members maintained that position in September.
Throughout it all, Bank Rate has stayed at 3.75%.
For savers, the takeaway is simpler: rather than trying to predict the Bank’s next move, focus on what your savings are earning today, how much flexibility you need, and whether your account still works for you.
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This article was last updated on 21 September 2026. Bank Rate and inflation figures were correct at the time of publication and may have changed since.
