Bank of England Holds Base Rate at 3.75% for Second Time This Year

Bank of England Holds Base Rate at 3.75% for Second Time This Year

The Bank of England has announced today (Thursday 30th April 2026) that it will hold the Base Rate at 3.75%.

This marks the second time this year that the Bank has chosen to maintain the current rate, despite earlier expectations that interest rates would be cut during 2026.

Why has the Base Rate been held?

The decision was made by the Bank’s Monetary Policy Committee (MPC), with members voting 8–1 in favour of keeping rates unchanged. One member voted for an immediate rate increase, reflecting growing concern around rising inflation.

While interest rates had been on a downward path following cuts last year, the outlook has shifted.

Ongoing conflict in the Middle East, particularly involving Iran, has pushed up global oil prices. This is expected to lead to higher energy, food, and manufacturing costs throughout 2026.

As a result, the MPC has warned that inflation is likely to rise further in the near term, having already increased to around 3.3% in March.

Governor Andrew Bailey reiterated that the Bank remains prepared to act if needed to bring inflation back towards its 2% target.

What does this mean for you?

Holding the Base Rate means:

Mortgage holders and borrowers may experience short-term stability in interest rates
Savings rates are unlikely to change significantly in the immediate term
Lenders may continue to adjust products cautiously in response to market conditions
However, the split vote indicates that further rate increases cannot be ruled out.

When is the next Base Rate review?

The Base Rate is reviewed approximately every six weeks by the Bank of England.

The next announcement is expected in June 2026.