Bank of England Base Rate: decisions tracker

The Bank of England's Bank Rate stands at 3.75% (BoE IADB, effective 28 July 2026). The Monetary Policy Committee confirmed that level at its June 2026 meeting, voting 7-2 to hold, with inflation at 2.8% in the year to May 2026 (ONS) and the committee projecting 3.25% for the final three months of the year (Bank of England Monetary Policy Summary, June 2026).

This page is the running record of MPC decisions and the market context around them, together with the arithmetic that turns a rate move into a monthly mortgage payment. It replaces the individual news articles this site previously published after each announcement; their content is folded into the log below, and the page is updated after each MPC decision.

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The current position

Bank Rate	3.75% (BoE IADB, effective 28 July 2026)
Last decision	Hold, June 2026 MPC meeting
Vote	7-2 (two members preferred 4.00%)
CPI inflation	2.8% in the year to May 2026 (ONS)
MPC inflation projection	3.25% in the final three months of 2026 (Bank of England, June 2026)

The MPC meets eight times a year, roughly every six weeks, and announces each decision at noon on the published meeting day. For the mechanics of who sits on the committee and how the rate reaches mortgages and savings accounts, see the base rate explainer.

Decision log

Entries are dated by when this site recorded them, newest first. Source attribution sits with each entry.

17 July 2026 — the Governor's account of the June hold

Governor Andrew Bailey said "I think holding is the right, the right position to be in at the moment" (Bank of England, 18 June 2026). The hold came against a backdrop in which inflation has run higher than the Bank's own forecasts, with Bailey acknowledging that "Inflation is higher than we expected it to be". The Bank's inflation target is 2%, and Bailey described the MPC's current task as getting inflation "back to 2%".

Energy prices have fallen from their peak but remain above pre-conflict levels. Bailey confirmed that "energy prices have come down quite a lot, but they're still above where they were before this conflict started" (Bank of England, 18 June 2026), and the MPC recorded "caution around the path of energy prices down". Bailey noted that "the economy has softened", citing this as the backdrop against which the committee is judging whether the current above-target inflation is likely to persist.

22 June 2026 — held at 3.75%, vote 7-2

The Bank of England held Bank Rate at 3.75% at its June 2026 meeting, citing uncertainty over the impact of high energy prices (Bank of England Monetary Policy Summary). The vote was 7-2: two members, Huw Pill and Megan Greene, voted to raise the rate to 4%, with Greene highlighting uncertainty over the impact of higher energy prices on households and businesses.

Inflation stood at 2.8% in the year to May 2026 (ONS consumer price inflation release). The MPC lowered its overall inflation expectations compared with its April meeting, projecting that the rate will reach 3.25% in the final three months of 2026. Ofgem's energy price cap was set to increase by 13% in July 2026, and the Bank's policymakers noted that oil prices remained higher than before the Middle East conflict and had continued to be volatile.

The fiscal backdrop tightened in the same month: ONS public sector finances data showed the UK borrowed £23.3bn in May 2026, up almost a third on the same month the previous year and £5.6bn above the Office for Budget Responsibility's forecast. Interest payable on government debt reached £11.7bn in May, the highest ever recorded for any May.

19 June 2026 — the gilt-sales programme running underneath every decision

At its September 2025 meeting the MPC voted to reduce the stock of gilts held in the Asset Purchase Facility by £70 billion over the period from October 2025 to September 2026, targeting a total of £488 billion (Bank of England APF Gilt Sales Market Notice, March 2026). The Asset Purchase Facility holds UK government bonds accumulated during rounds of quantitative easing; selling those holdings back into the market is quantitative tightening.

The channel to mortgage costs runs through gilt yields. When the Bank sells gilts into the secondary market, it adds to the supply of UK government bonds in circulation, which tends to put upward pressure on yields. Fixed-rate mortgage offers are priced by lenders against swap rates, which move in close correlation with medium-term gilt yields — particularly the two-year and five-year maturities that correspond to the most common fixed-term choices. A £70 billion reduction across a full year is a sustained addition to gilt supply, and lenders typically reflect the anticipated pattern of sales in headline fixed rates before any individual application is made.

12 June 2026 — money-market plumbing held steady through the volatility

The Bank's Money Markets Committee met in March 2026 as sterling money markets were absorbing conflict-related energy moves and their macroeconomic implications (Bank of England MMC Minutes, March 2026). The committee found sterling funding markets resilient: repo rates held within their usual ranges and unsecured rates remained largely steady throughout the period, even as market-implied central bank policy expectations shifted.

The same minutes recorded fixed spreads above Bank Rate for the Discount Window Facility: +15 basis points for Level A collateral, +25 for Level B, and +50 for Level C. The DWF is a backstop that banks can draw on when short-term funding pressures arise; fixed, predictable spread pricing lowers the risk that a funding squeeze is passed through to retail mortgage pricing.

What a hold or a cut changes on a monthly payment

A repayment mortgage payment follows the standard amortisation formula: monthly payment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the monthly rate, and n the number of payments.

On a £200,000 repayment mortgage over 25 years (n = 300):

• At 3.75% (the current rate): r = 0.0375 ÷ 12 = 0.003125, and (1.003125)^300 ≈ 2.5498. Payment = 200,000 × 0.003125 × 2.5498 ÷ 1.5498 ≈ £1,028 per month.
• At 4.00% (the level two MPC members voted for in June 2026): r ≈ 0.003333, (1.003333)^300 ≈ 2.7138. Payment ≈ £1,055.67 per month — £27.41 more each month, £328.92 more a year.
• At 3.50% (a quarter-point cut): r ≈ 0.002917, (1.002917)^300 ≈ 2.3958. Payment ≈ £1,001 per month — £27 less each month, £324 less a year.

The June 2026 coverage above carried the same arithmetic at other loan sizes: a £250,000 loan over 25 years costs approximately £1,285 per month at 3.75% and £1,320 at 4.00%; a £150,000 loan costs approximately £771 and £792; a £500,000 loan costs approximately £2,571 and £2,639. Stretching the £250,000 loan to a 30-year term lowers the payment to approximately £1,158 at 3.75% and £1,194 at 4.00%.

Whether any of these deltas reaches an individual borrower depends on the product. Tracker mortgages price directly against Bank Rate, so a hold means no change and a cut passes through at the next payment reset. Standard variable rates are set at each lender's discretion and usually follow Bank Rate with a lag. Fixed-rate deals do not move mid-term at all — the rate that matters is the one available at remortgage, which is priced off swap-rate expectations rather than the current Bank Rate level.

Compare payments across rate scenarios with your own loan size →

Reading the log as a borrower

Two threads run through the entries above. The first is that the headline decision — hold at 3.75% — sits on top of a quieter programme of gilt sales that shapes fixed-rate pricing regardless of whether Bank Rate moves. The second is that the committee's own vote split (7-2 in June 2026) and its inflation projection (3.25% for late 2026, against a 2% target) are forward signals: swap markets price fixed deals off where the rate is expected to go, not where it is.

For borrowers whose fixed term is ending, the practical comparison is the expiring rate against currently available deals and the lender's standard variable rate, run at the actual loan size and remaining term. Model your remortgage options →

How this page is updated

This page is updated after each MPC decision, normally within a few days of the announcement, with the new rate, the vote split, and the committee's stated reasoning added as a dated log entry. The current-rate figure at the top of the page is checked against the Bank of England's Interactive Database (BoE IADB) snapshot this site refreshes automatically.

Update history

• 1 August 2026 — page created, consolidating four news items previously published on 12 June, 19 June, 22 June and 17 July 2026.

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