Bank Rate and the Monetary Policy Committee
Bank Rate anchors the rates banks charge each other; it is not the rate a saver is paid or a borrower is charged. The Monetary Policy Committee sets it at the rate the Bank of England pays to and charges on reserves.
On this page
- Bank Rate
- Held at 3.75% in the decision published on 17 September 2026; 6-3 vote to maintain.Bank of England, September 2026 Monetary Policy Summary and Minutes
- Inflation
- CPI 3.1% as read on 22 September 2026; the inflation target is stated separately in the MPC remit.Office for National Statistics, Consumer Price Inflation
- Next decision
- 5 November 2026; the schedule is not a forecast.Bank of England, Upcoming MPC dates
- MPC remit
- Set Bank Rate so that inflation returns to the 2% target, sustainably; subject to the Treasury's remit.Bank of England, Monetary Policy Committee remit
Bank Rate is the rate on reserves, not a lender's advertised rate
Bank Rate is the interest rate the Bank of England pays to commercial banks, building societies and other institutions that hold reserves at the Bank, and the rate it charges on overnight loans it may make to them. It is therefore an anchor for the rates those institutions can offer on deposits and charge on lending, but it is not the rate you are quoted by a provider. Bank of England, What is Bank Rate? (opens in a new tab).
An advertised savings or mortgage rate is the institution's own figure. When Bank Rate moves, advertised rates tend to move with it, which is why a saved comparison table ages quickly and why a comparison site gives each advertised figure a short shelf-life. An institution's page is the source for the rate it offers, not the Bank of England.
The MPC sets Bank Rate at eight scheduled meetings a year
The Monetary Policy Committee votes on Bank Rate and publishes its Monetary Policy Summary and Minutes. The decision published on 17 September 2026 maintained Bank Rate at 3.75% by 6 votes to 3. Bank of England, September 2026 Monetary Policy Summary and Minutes (opens in a new tab).
The December 2025 decision reduced Bank Rate by 0.25 percentage points to 3.75%; it was published on 18 December 2025. Bank of England, December 2025 Monetary Policy Summary and Minutes (opens in a new tab).
The Bank publishes eight scheduled MPC decision dates for 2026. Each meeting's outcome is published as a Monetary Policy Summary and Minutes. A scheduled decision date is not a prediction of the outcome. Bank of England, Upcoming MPC dates (opens in a new tab).
Bank Rate, SONIA and the ONS inflation print are three different series
SONIA (the Sterling Overnight Index Average) is the unsecured overnight rate for sterling transactions; it is administered by the Bank of England and used as a benchmark for derivatives. SONIA is a wholesale rate, not a retail savings rate, and it is not interchangeable with Bank Rate. A product page that quotes Bank Rate and a product page that uses a SONIA reference are describing different inputs. Bank of England, SONIA Benchmark (opens in a new tab).
The Office for National Statistics publishes CPI and CPIH, each on a monthly release schedule. The headline CPI was 3.1% on the read of 22 September 2026; CPIH applies a different method including owner-occupiers' housing costs and is published with the same release. These are statistical facts about a stated reference month and fall behind when the next month is released; they do not decay over time. ONS, Consumer Price Inflation, UK (opens in a new tab).
This page is an original explanation of Bank of England and ONS material; no endorsement by either publisher is implied. The Bank's legal terms apply to its resources and specify Open Government Licence terms for its Database, rather than for every publication. Nothing on this page is a forecast, a recommendation, or financial advice. Bank of England, Legal terms (opens in a new tab).