Bank of England Holds Bank Rate at 3.75% in July 2026 as Three Members Push for a Rise
The Bank of England held Bank Rate at 3.75% on 30 July 2026 by a 6–3 vote. Megan Greene, Catherine L Mann and Huw Pill voted for a rise to 4%, citing the risk that higher energy prices feed into wider inflation.
By Entrepreneur Group · Published · Updated
The Bank of England held Bank Rate at 3.75% on 30 July 2026. The Monetary Policy Committee voted 6–3. Megan Greene, Catherine L Mann and Huw Pill voted to raise the rate to 4%, according to the Bank's minutes. Nobody voted for a cut.
The decision came even though inflation had fallen to 2.6% in June. The committee expects it to rise again later in the year as higher energy prices, linked to the conflict in the Middle East, pass through to household and business costs.
How the committee voted
- To hold at 3.75% (6): Andrew Bailey, Sarah Breeden, Swati Dhingra, Clare Lombardelli, Dave Ramsden and Alan Taylor.
- To raise to 4% (3): Megan Greene, Catherine L Mann and Huw Pill.
IG notes it was the fifth meeting in a row at 3.75%, and that three members voted for a rise, up from two in June.
Why the majority held
The majority said borrowing costs had already risen since the conflict began, which gave some protection against energy-driven inflation. Holding let them gather more evidence. They saw little sign so far of "second-round effects", where higher energy costs lead to higher wages and prices across the economy, but said it was too early to be sure.
The minutes describe the economy as soft, with subdued demand and a loosening labour market. As of 28 July, Brent crude was $84 a barrel and UK wholesale gas was 136p a therm. The Bank said prices were volatile and above pre-conflict levels, with risks "skewed to the upside".
Why three wanted a rise
The three members who voted for 4% were less reassured. They pointed out that inflation had been above the 2% target for more than five years, and argued that a rise now would reduce the risk of higher prices becoming embedded. In their view, doing too little would be more costly than doing too much.
What comes next
The committee said it "stands ready to act as necessary" to bring inflation back to 2%. The next decision was due on 17 September 2026.
What small businesses can do
This section is editorial guidance, not financial advice.
- Do not plan for cuts. With a third of the committee voting for a rise, a rate cut in the near term looks unlikely. Base your plans on rates staying at 3.75% or going higher.
- Check variable-rate borrowing. Work out what a 0.25 percentage point rise would add to your monthly repayments on overdrafts and variable loans.
- Watch energy contracts. The Bank's main concern is energy. If your contract is up for renewal, start comparing quotes early.
- Keep a cash buffer. With prices volatile, a few months of fixed costs in reserve gives you room to react.
Frequently asked questions
What is the Bank of England base rate in July 2026?
Bank Rate was held at 3.75% on 30 July 2026, by a 6–3 vote of the Monetary Policy Committee.
Who voted to raise interest rates in July 2026?
Megan Greene, Catherine L Mann and Huw Pill voted to raise Bank Rate to 4%. The other six members voted to hold.
Why did the Bank of England not cut rates in July 2026?
Although inflation fell to 2.6% in June, the Bank expected it to rise later in 2026 as higher energy prices linked to the Middle East conflict pass through, so the majority chose to hold.
Sources
- Bank of England: Monetary Policy Summary and minutes, July 2026 (reviewed 27 October 2026)
- IG: Bank of England interest rate decision, July 2026 (reviewed 27 October 2026)