Bank Rate is the interest rate the Bank of England charges commercial banks. It currently stands at 3.75%, held at the MPC's 18 June 2026 meeting.
Last reviewed: 1 July 2026
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MONEY GUIDES |
Bank Rate is the interest rate the Bank of England pays to, and charges, commercial banks and building societies. It is the single most important interest rate in the UK because it influences the rates lenders charge on mortgages and pay on savings.
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KEY FACTS
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The current rate and how the Committee reached it
At its meeting ending 17 June 2026, the Monetary Policy Committee voted by a majority of 7-2 to hold Bank Rate at 3.75%. Two members preferred an immediate rise to 4%. The Committee's stated reasoning centred on volatile global energy prices linked to conflict in the Middle East, alongside UK CPI inflation that had eased to 2.8% but was expected to rise again later in the year as energy costs fed through.
Recent Bank Rate decisions
| Meeting Date | Decision | Vote Split |
|---|---|---|
| 30 April 2026 | Hold at 3.75% | 8-1 (1 for rise to 4%) |
| 18 June 2026 | Hold at 3.75% | 7-2 (2 for rise to 4%) |
| 30 July 2026 | Not yet decided | - |
How Bank Rate feeds through to borrowing and saving
Tracker and standard variable rate mortgages respond directly to Bank Rate changes, since their pricing is contractually linked to it. Fixed rate mortgages respond instead to swap rate movements, which reflect market expectations of where Bank Rate is heading, so fixed pricing can move ahead of, or independently of, an actual MPC decision. Savings rates, particularly easy access accounts, tend to track Bank Rate over time, though not always immediately.
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June 2026 MPC vote split (9 members) Voted to hold at 3.75%: 78% Voted to raise to 4%: 22% |
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Worked Example: Tracker mortgage on a hold decision A borrower on a tracker mortgage set at Bank Rate plus 0.75% sees no change in their monthly payment when the MPC holds at 3.75%, since their rate is contractually tied to the Bank Rate figure itself, currently 4.5% in this example. If the Committee had voted to raise Bank Rate to 4%, this borrower's rate would move to 4.75% at the next payment date. |
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This article is general information, not financial or legal advice. Rules and limits can change: always check the current position with the regulator or scheme concerned before relying on any figure here. |
Is Bank Rate the same as my mortgage interest rate?
No. Bank Rate is the rate the Bank of England sets for the wider economy. Individual lenders set their own mortgage and savings rates, often by adding a margin on top of, or referencing, Bank Rate or swap rates.
When is the next Bank Rate decision?
The next scheduled Monetary Policy Committee meeting concludes on 30 July 2026, with the decision published at midday alongside an updated Monetary Policy Report.
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Related Guides |
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Sources |
