Bank Rate Held at 3.75% in September 2026, With Three Votes for a Rise
The Bank of England held Bank Rate at 3.75% on 17 September 2026 by a 6–3 vote. Three members wanted a rise to 4%, and the Bank expects inflation to climb to slightly above 4% in early 2027.
By Entrepreneur Group · Published · Updated
The Bank of England held Bank Rate at 3.75% on 17 September 2026. The Monetary Policy Committee voted 6–3, the same split as in July. The three members in the minority, Megan Greene, Catherine L Mann and Huw Pill, voted to raise the rate to 4%. Nobody voted for a cut.
The decision came a day after figures showed CPI inflation rising to 3.1% in August. The Bank's September minutes expect inflation to reach around 3¾% in the final quarter of 2026 and slightly above 4% in the first quarter of 2027.
Why the Bank held
The six members who voted to hold were Andrew Bailey, Sarah Breeden, Swati Dhingra, Clare Lombardelli, Dave Ramsden and Alan Taylor. The minutes describe a labour market that is still weak. Unemployment was an estimated 4.9% in the three months to July, and "there was still judged to be a margin of slack in the labour market", although that slack has probably stopped growing.
Growth was steadier than expected. GDP rose 0.4% in the second quarter, slightly above the Bank's forecast, and staff expected similar growth in the third quarter, although business surveys pointed to something weaker.
The main worry is energy. The Bank judged that "the risks to the inflation outlook are tilted to the upside", more so than in July. It said the right policy stance "will depend on the scale and duration of the shock", and that the risk of second-round effects on wages and prices grows the longer energy prices stay high.
The Committee also voted unanimously to keep reducing its holdings of government bonds, running them down to zero by 2034.
What the vote split tells you
For two meetings in a row, a third of the Committee has wanted higher rates. That does not mean a rise is coming, and the Bank says it is not on a pre-set path. But it does mean borrowers should not plan around rate cuts in the near term. The Bank says it "stands ready to act as necessary to ensure that CPI inflation remains on track" to meet its 2% target.
The next decision is due on 5 November 2026, according to the Bank of England.
What business owners can do
This section is editorial guidance, not financial advice.
- Know your exposure. List every loan, overdraft and card facility, and note which are variable and which are fixed, and when each fixed term ends.
- Model a rise. Work out what a 0.25 or 0.5 percentage point increase would add to your monthly repayments on variable debt.
- Talk to your lender early. If a fixed rate ends in the next six months, ask about options before the deadline rather than rolling on to a standard variable rate.
- Don't wait for cuts. If you have been delaying investment in the hope of cheaper borrowing, plan on today's rates instead.
Frequently asked questions
What is the Bank of England base rate in September 2026?
Bank Rate is 3.75%. The Monetary Policy Committee held it at that level on 17 September 2026 by a 6–3 vote, with three members voting to raise it to 4%.
When is the next Bank of England interest rate decision?
The next Bank Rate announcement is scheduled for 5 November 2026.
Why did some Bank of England members vote to raise rates?
The minority were concerned about inflation, which rose to 3.1% in August 2026 and is expected to go above 4% in early 2027, driven largely by higher energy prices.
Sources
- Bank of England: Monetary Policy Summary and minutes, September 2026 (reviewed 27 October 2026)
- Bank of England: Interest rates and Bank Rate (reviewed 27 October 2026)
- ONS: Consumer price inflation, UK: August 2026 (reviewed 27 October 2026)