The Bank of England Monetary Policy Committee (MPC) is scheduled to announce its next interest rate decision on Thursday 18 June 2026 at noon. The current Bank Rate stands at 3.75%, where it has been held since December 2025 following a 0.25 percentage point cut.
At its most recent meeting on 30 April 2026, the MPC voted 8-1 to hold rates at 3.75%, with one member voting to raise to 4%. The Bank cited ongoing inflation pressures and uncertainty from Middle East energy price volatility as reasons for the pause.
What analysts expect in June
Most City economists expect the MPC to hold the base rate at 3.75% on 18 June, given that UK inflation stood at 3.3% in the most recent reading - still above the Bank's 2% target. The Bank of England's own commentary noted that the Iran-Middle East conflict has disrupted oil and gas transportation, pushing energy prices above earlier forecasts and delaying the expected return to target inflation.
Markets are not currently pricing in a rate increase at the June meeting. Analysts at Tembo Money and others note that higher energy prices may paradoxically reduce the case for rate rises, as they act as a demand dampener on the economy. The MPC has signalled it will act on incoming data.
What it means for mortgage holders
A hold at 3.75% means no immediate change to tracker mortgage rates or standard variable rates. Average two-year fixed mortgage rates have risen to above 5% in recent weeks as markets priced in the possibility of a base rate increase, according to the HomeOwners Alliance.
Mortgage holders coming off fixed deals in June and July 2026 will find rates higher than they were 12 months ago. The Bank of England's guidance suggests rates will remain above 3% through the end of 2026, with modest cuts possible later in the year if inflation falls back toward target.
When is the next Bank of England decision after June?
Following the 18 June meeting, the MPC's scheduled decision dates for the remainder of 2026 are: 30 July, 17 September, 5 November, and December. Dates and full minutes are published at bankofengland.co.uk.
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This article is for informational purposes only. All facts sourced from publicly available reports at time of publication, 31 May 2026.
Sources: Bank of England MPC schedule and commentary at bankofengland.co.uk; HomeOwners Alliance mortgage rate data, May 2026; Tembo Money interest rate forecast, May 2026.
