On 17 September 2026 the Bank of England’s Monetary Policy Committee voted 6 to 3 to keep Bank Rate at 3.75%. Three members wanted an increase to 4%. The next decision is due on 5 November 2026.
What did the Bank of England decide in September?
The Committee held Bank Rate at 3.75%. Andrew Bailey, Sarah Breeden, Swati Dhingra, Clare Lombardelli, Dave Ramsden and Alan Taylor voted to hold. Megan Greene, Catherine Mann and Huw Pill voted for a 0.25 percentage point rise.
Bank Rate has stood at 3.75% since the cut in December 2025, when the Committee lowered it from 4% by 5 votes to 4. It then voted to maintain it in June, July and September 2026.
Why did the Committee hold the rate?
The Bank points to energy prices. The conflict in the Middle East has pushed crude and refined energy prices up since the July meeting, and they remain more volatile and higher than before the conflict.
UK CPI inflation rose to 3.1% in August. Based on energy prices at 14 September, the Bank expects it to reach around 3¾% in the last quarter of 2026 and slightly above 4% in the first quarter of 2027.
Against that, the Committee found little evidence so far of material second-round effects in prices and wages. It said it “stands ready to act as necessary” to bring inflation back to 2%, and that the risks to the inflation outlook are tilted to the upside.
Does Bank Rate determine the interest rate on my current account?
Not directly. The Bank of England explains that when it raises Bank Rate, banks will usually increase the interest they offer on savings. It adds that rates can change for other reasons and may not move by the same amount.
The Bank’s own statistics show the gap. In August 2026 the average effective rate on individuals’ sight deposits, the Bank’s term for money that can be withdrawn on demand, was 1.65%. A year earlier it was 1.84%, when Bank Rate was 4%.
New time deposits, where money is locked away, paid 4.24% on average in August 2026, up from 3.79% in August 2025. Money you can reach at any time earns much less than money you tie up.
What should a current account holder check now?
With Bank Rate unchanged, banks have no automatic reason to change what they pay. A few points still decide what an account earns:
- Whether the rate is fixed or variable. A variable rate can change after any decision; a fixed one runs for the period the bank states.
- How much of the balance earns interest. Many accounts pay interest only on the first portion of the balance, so the headline rate applies to a smaller balance than it might appear.
- What you must do to get it. A minimum monthly pay-in, a monthly fee or a limit on the number of accounts can all attach to the rate.
- What happens when an introductory period ends. The rate after that date is the one that counts over a full year.
The next decision on 5 November 2026 is the date to watch. The Committee has said it stands ready to act if higher energy prices feed into wages and prices.
Quick answers
What is Bank Rate?
It is the Bank of England’s official interest rate. The Bank says it affects the level of all other interest rates in the UK, from savings to mortgages.
Will my current account rate change because the rate was held?
Keeping Bank Rate unchanged gives no direct reason for your account’s interest rate to change. Your bank sets the rate on your account and can change it for its own reasons, within the terms it gave you.
When is the next decision?
On Thursday 5 November 2026.
Sources
- Bank of England: Monetary Policy Summary, September 2026, published 17 September 2026.
- Bank of England: Monetary Policy Summary, December 2025.
- Bank of England: what is happening with interest rates in the UK.
- Bank of England: effective interest rates, August 2026 (published 29 September 2026), and August 2025.
Figures checked on 2 October 2026.
