Last reviewed: 1 June 2026
The Monetary Policy Committee voted by a majority of 8 to 1 to maintain Bank Rate at 3.75 percent at its meeting ending 29 April 2026, with one member preferring a 0.25 percentage point increase to 4 percent. The decision was published on 30 April and was the third consecutive meeting without a cut since the rate fell to 3.75 percent in December 2025.
- Bank Rate held at 3.75 percent on 30 April 2026 (MPC vote 8 to 1)
- Next MPC decision: 18 June 2026
- CPI inflation was 2.8 percent in the 12 months to April 2026, down from 3.3 percent in March
- Bank of England April Monetary Policy Report projects CPI at 3.3 percent in Q3 2026
- Governor Andrew Bailey said on 29 May the Bank is in no rush to move while the outcome of the Iran conflict is uncertain
What the April decision actually said
The Committee held rates because of two competing pressures: services inflation and pay growth are still running above levels consistent with the 2 percent target, while the conflict in the Middle East has pushed wholesale energy and oil prices higher than the February forecast assumed. The April Monetary Policy Report sets out a near-term inflation profile 1.4 percentage points higher than February, with CPI projected at 3.1 percent in Q2, 3.3 percent in Q3 and rising further in Q4 before easing back towards target.
Why mortgage rates moved before the Bank did
Fixed-rate mortgage pricing follows two-year and five-year swap rates rather than Bank Rate directly. Those swap rates jumped sharply when the Iran conflict began, as wholesale funding became more expensive. Lenders repriced fixed deals upward through March and most of April. Swap rates have eased back in recent weeks as markets priced in a longer hold from the Bank, allowing some lenders to trim headline rates again.
Where rates sit in early June
The average two-year fix is around 5.74 percent and the average five-year fix around 5.67 percent, according to figures collated in mid May. A small number of sub-4 percent fixes remain available to borrowers with the largest deposits, but rates beginning with a three are now usually only on variable trackers, which move with Bank Rate. Tracker pricing typically sits around 0.75 to 1.25 percentage points above Bank Rate depending on loan-to-value.
What this means for borrowers coming off a fix
Around 1.6 million UK households are due to remortgage in 2026 according to UK Finance. A household coming off a five-year fix taken in 2021 at around 1.5 percent will face a payment increase even at the cheapest current rates. Anyone within six months of the end of a fixed deal can usually lock a new rate now with their lender or through a broker, and switch to a cheaper deal later without penalty if rates fall before completion.
What to watch before 18 June
Three data releases will move expectations before the next MPC vote: the May CPI release on 18 June (which lands on MPC day itself), the May labour market figures on 11 June, and any further movement in oil futures linked to the Iran situation. A Reuters poll in May showed 33 of 62 economists expected no change in 2026, 14 expected at least one hike, and 15 expected at least one cut.
FAQs
When is the next Bank of England base rate decision?
The Monetary Policy Committee next meets on 18 June 2026. The decision is announced at 12 noon UK time on the day.
Will mortgage rates fall if the Bank holds again in June?
Not automatically. Fixed mortgage pricing is set by swap rates, which already price in expectations about future Bank Rate moves. If a hold is fully expected, fixed rates may move very little on the day itself.
Should I lock a fixed rate now or wait?
Anyone within six months of the end of a current fix can usually reserve a new rate now and still switch if better deals emerge before completion. This is a hedge against rates rising further during the conflict.
What is the difference between a tracker and a fixed rate?
A tracker moves with Bank Rate, usually at a set margin above it. A fix locks the rate for a set term, typically 2, 3, 5 or 10 years. Trackers are cheaper today but expose the borrower to any rate rise; fixes give certainty but are priced higher.
