What Did the Bank of England Decide on 17 September 2026?
The Bank of England’s Monetary Policy Committee (MPC) voted 6–3 to hold Bank Rate at 3.75% at its meeting ending on 16 September 2026, announced at noon on 17 September. It is the sixth hold of 2026. Bank Rate has not moved since the quarter-point cut on 18 December 2025.
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-point rise to 4% — the same three dissenters, and the same split, as on 30 July.
The vote was unchanged, but the language hardened. The committee judged that the risks to inflation are tilted to the upside, and more so than at the July Monetary Policy Report, and said it is ready to act to keep inflation on track for its 2% target. Four of the six who voted to hold — Bailey, Breeden, Lombardelli and Ramsden — wrote that the case for a rise grows the longer high energy prices persist. Only Dhingra and Taylor put particular weight on economic slack and already-restrictive policy as reasons to wait for more evidence.
When Is the Next Bank of England Interest Rate Decision?
The next Bank of England interest rate decision is on Thursday 5 November 2026, announced at 12:00 UK time with the meeting minutes and a new Monetary Policy Report. It is the first full forecast round since energy prices climbed again over the summer, which makes it the meeting where a change in direction is most likely to be signalled. The final decision of 2026 follows on Thursday 17 December.
Bank of England MPC dates and decisions 2026:
- 5 February 2026 — held at 3.75% (5–4 vote)
- 19 March 2026 — held at 3.75% (unanimous)
- 30 April 2026 — held at 3.75% (8–1; Pill voted for a rise)
- 18 June 2026 — held at 3.75% (7–2; Greene and Pill voted for a rise)
- 30 July 2026 — held at 3.75% (6–3; Greene, Mann and Pill voted for a rise)
- 17 September 2026 — held at 3.75% (6–3; Greene, Mann and Pill voted for a rise)
- 5 November 2026 — next decision, with Monetary Policy Report
- 17 December 2026
Bank of England MPC dates 2027, confirmed by the Bank on 17 September 2026. All are Thursdays, announced at 12:00 UK time.
| 2027 MPC decision | Monetary Policy Report? |
|---|---|
| 4 February 2027 | Yes |
| 18 March 2027 | No |
| 29 April 2027 | Yes |
| 17 June 2027 | No |
| 29 July 2027 | Yes |
| 16 September 2027 | No |
| 4 November 2027 | Yes |
| 16 December 2027 | No |
What Is the Current UK Interest Rate?
The current UK interest rate (Bank Rate) is 3.75%. It has been unchanged since 18 December 2025 and was held again on 17 September 2026. Bank Rate is the rate the Bank of England pays commercial banks on money they hold with it, and it feeds through to mortgages, savings, business borrowing and the value of the pound. Our guide to how interest rates move exchange rates explains the link.
Borrowing costs have risen even though Bank Rate has not. Markets price future rate rises in advance: the Bank’s minutes note that quoted two-year fixed mortgage rates were around 0.95 percentage points higher than before the Middle East conflict began.
Why Did the Bank of England Hold Interest Rates in September 2026?
The majority held because the energy shock has not yet fed into wages and wider prices. UK CPI inflation rose to 3.1% in August, more than a point above target, which triggered an open letter from the Governor to the Chancellor. About 0.7 points of that 1.1-point overshoot came directly from energy, mostly motor fuel. Services inflation held at 3.4%, down from 4.5% in March.
The near-term outlook has worsened. Brent crude reached $106 a barrel on 14 September, and Bank staff now expect CPI inflation to reach around 3¾% in the fourth quarter of 2026 and slightly above 4% in early 2027, up from a 3.2% fourth-quarter figure in the July forecast.
The six holders pointed to three restraints on inflation: little sign so far of second-round effects in pay and prices, weaker-than-expected food inflation, and a soft labour market, with unemployment at 4.9% in the three months to July. Tighter market interest rates were also doing some of the work.
The three dissenters argued the opposite way. They noted that inflation is projected to peak in early 2027, just as the annual wage round is settled. With GDP growing 0.4% in the second quarter and 0.4% again in July, they judged the slack that would contain those effects may already have peaked, so it is cheaper to move early than to reverse entrenched inflation later.
Will UK Interest Rates Go Up in November 2026?
A rise to 4.00% on 5 November is a live possibility rather than a certainty. Two more members would need to switch to produce a 5–4 majority, and four of the six holders have set out the conditions under which they would. CNBC reported that a rise of at least a quarter point is widely anticipated in November.
The Bank’s own minutes show a gap between surveys and prices. Nearly all respondents to its September Market Participants Survey expected a prolonged hold. By contrast, the market interest rate curve rose to peak at around 4.9% by the end of 2027, and the Bank’s market intelligence showed the perceived probability of a near-term rise had increased. A rate cut is not expected in the near term; Taylor noted easing could come into view only if geopolitical tensions and inflation pressures ease.
| 5 November scenario | Likelihood | Likely GBP impact |
|---|---|---|
| Rise to 4.00% | Live possibility | GBP-supportive, especially against the dollar, as it would restore rate parity with the Fed |
| Hold at 3.75%, vote narrows to 5–4 or new forecast shows inflation above 4% | Also plausible | Modestly GBP-supportive |
| Hold with a softer tone as energy prices ease | Lower on current evidence | GBP-negative — sterling could drift lower |
Scenarios reflect Cambridge Currencies’ reading of the 17 September minutes and market pricing. They are not Bank of England forecasts, and rates may move either way. See our currency forecasts hub for the latest ranges.
What Did the Bank of England Decide on Quantitative Tightening?
The MPC voted unanimously on 17 September to run its stock of gilts held for monetary policy down to zero under a multi-year plan. It will sell £20 billion a year alongside maturing gilts, an average reduction of about £46 billion a year, with quantitative tightening (QT) expected to finish by September 2034.
The stock stood at £488 billion on 16 September. The Bank will keep £120 billion of its longest-dated gilts to back banknote issuance, leaving £368 billion to unwind. Gilt sale auctions pause while the Bank finalises a model for selling to the Government’s Debt Management Office, with operational details due by April 2027. For currency markets, a fixed QT path removes one source of uncertainty and leaves Bank Rate as the main driver of sterling.
How Did the Pound React to the Bank of England Decision?
Sterling slipped after the announcement. GBP/USD traded at 1.3381 on the afternoon of 17 September, down about 0.23%, and EUR/GBP rose toward 0.8600 — equivalent to GBP/EUR near 1.16, according to FXStreet.
The pound fell despite tougher language because markets had priced a meaningful chance of a September rise — roughly one in four going into the meeting, based on LSEG data cited by CNBC. A hold with an unchanged 6–3 vote was less hawkish than that pricing implied.
The Federal Reserve added to the pressure. On 16 September it raised US rates by a quarter point to 3.75%–4.00% in a unanimous vote, its first rise since July 2023. US rates now sit level with or above UK Bank Rate, removing the yield edge that had supported the pound against the dollar. The full detail is on our Federal Reserve interest rate decision page.
What Does the Bank of England Decision Mean for Currency Transfers?
Sterling takes its lead from the gap between UK interest rates and those elsewhere. Against the dollar, that gap has closed since the Fed’s rise, so the 5 November decision matters more for GBP/USD than any meeting this year — see our GBP/USD forecast. Against the euro, Bank Rate remains well above the European Central Bank’s deposit rate, which continues to underpin the pound; our pound to euro forecast tracks that differential.
The same rate gaps set the cost of fixing a rate ahead. With UK rates above euro rates, a GBP/EUR forward rate is typically slightly below the spot rate. With US rates now level with or above UK rates, a GBP/USD forward sits close to spot, or slightly above it, for someone selling pounds. Our explainer on why the forward rate differs from the spot rate shows the calculation.
On a large transfer, small rate moves are worth real money. Selling £500,000 for euros at an illustrative 1.16 gives €580,000; at 1.14 it gives €570,000 — €10,000 less for the same pounds. The same two-cent move on GBP/USD, from an illustrative 1.35 to 1.33, costs $10,000 on £500k.
- Buying property abroad: a completion date near 5 November carries decision risk in both directions — see our property buyers hub and guide to buying property in Spain.
- Businesses: rate-driven swings hit invoice values and margins — see how exchange rates affect UK business.
- Large one-off transfers: inheritance, business sale or investment proceeds are most exposed to a single-day move — see the best way to transfer large amounts internationally.
Markets often move before an MPC announcement, so waiting for the decision can mean the move has already happened. Three common approaches are available. A forward contract fixes today’s rate for up to 12 months. A limit order targets a better rate automatically. Splitting a transfer either side of 5 November averages the rate you achieve. Each has trade-offs, and which suits you depends on your deadline and how much certainty you need.
Frequently Asked Questions
When is the next Bank of England interest rate decision?
The next Bank of England interest rate decision is on Thursday 5 November 2026 at 12:00 UK time, with a new Monetary Policy Report. The final 2026 decision is on 17 December, and the first of 2027 is on 4 February.
What is the current UK interest rate?
The current UK interest rate (Bank Rate) is 3.75%. The Bank of England held it on 17 September 2026 in a 6–3 vote, and it has been at that level since 18 December 2025.
Did the Bank of England change interest rates in September 2026?
No. On 17 September 2026 the Bank of England held Bank Rate at 3.75%. Megan Greene, Catherine Mann and Huw Pill voted for a 0.25-point rise to 4%, the same split as in July.
Will UK interest rates go up in November 2026?
A rise to 4% on 5 November is a live possibility. Three members already vote for one, four of the six holders say the case grows while energy prices stay high, and the Bank judges inflation risks are tilted further to the upside. Bank staff expect inflation to reach slightly above 4% in early 2027.
Why did the pound fall after the Bank of England decision?
Markets had priced roughly a one-in-four chance of a September rise, so a hold with an unchanged 6–3 vote disappointed. The Federal Reserve’s rise to 3.75%–4.00% a day earlier also removed the pound’s interest rate advantage over the dollar.
How often does the Bank of England meet?
The Monetary Policy Committee sets Bank Rate eight times a year, roughly every six weeks, with decisions announced at 12:00 UK time. Four meetings a year come with a Monetary Policy Report — in February, April, July and November in both 2026 and 2027.
Should I wait for the November decision before transferring money?
Waiting is a bet on the outcome, and markets usually move before the announcement. A forward contract fixes a rate now for a payment due later, removing the need to time the meeting. Our guide to fixing an exchange rate for a future payment sets out the options and costs.
Moving sterling before the 5 November Bank of England decision? Speak to a Cambridge Currencies specialist about timing your transfer around the MPC. Every transfer is completed by phone with a dedicated specialist, working with FCA-authorised partners Currencycloud (FRN 900199) and ScioPay (FRN 927951).
Related guides: Fed interest rate decision · Forward contracts explained
