Bank of England holds interest rates at 3.75% – but three members wanted a rise

The Bank of England left Bank Rate unchanged at 3.75% on 17 September 2026. The Monetary Policy Committee voted 6–3, and the three who disagreed – Megan Greene, Catherine L Mann and Huw Pill – wanted to raise rates to 4%, not cut them.

The reason is energy. The Bank said the conflict in the Middle East was the main source of uncertainty, with Brent crude up 36% to $106 a barrel and UK wholesale gas up 78% since July. CPI inflation rose to 3.1% in August, and the Bank expects it to reach around 3.75% in the last three months of 2026 and slightly above 4% in early 2027.

What this means for you

• Mortgages: if you are on a tracker or your lender's standard variable rate, your payments stay the same for now. But hopes of further cuts this year have faded, and a rise is now possible.
• Fixed-rate deals: nothing changes until your deal ends. If that is within the next six months, it is worth looking at new deals now, as fixed rates are priced on where markets expect Bank Rate to go.
• Savings: with inflation at 3.1% and heading higher, money in an account paying less than that is losing value in real terms.

Ways to save

• Many lenders let you lock in a new mortgage deal up to six months before your current one ends. Ask a broker or your lender to compare a product switch with remortgaging elsewhere.
• Check what your easy-access savings account pays. If it is below inflation, compare top-paying easy-access accounts and fixed-rate bonds, and use your cash ISA allowance if your interest could go over your Personal Savings Allowance.
• If you have spare cash and a variable-rate debt, overpaying is often a guaranteed "return" that beats savings rates – check for early repayment charges first.

Sources: Bank of England, Office for National Statistics