Bank of England Continues To Hold Base Rate at 3.75%

The Bank of England has announced today (Thursday 18th June 2026) that it will continue to hold the Base Rate at 3.75%.

This marks the fourth consecutive time that the Bank has chosen to maintain the current rate.

Sarah Coles, head of personal finance with AJ Bell, said: "It hasn't come as much of a surprise that the Bank of England has decided to sit tight again this month. With inflation holding steady in May, a peace deal signed [to end the Middle East conflict] and the price of oil retreating, inflation expectations have been falling and taking rate forecasts with them."

Aaron Strutt, of mortgage broker Trinity Financial says: "It is sensible to review options early, secure a rate in advance and keep checking whether cheaper deals become available before completion. Tracker mortgages without early repayment charges may suit some borrowers, but fixed rates remain attractive for those wanting certainty."

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

When is the next Base Rate review?

The Base Rate is reviewed every 6 weeks by the Bank of England, deciding whether or not interest rates should increase, decrease or remain the same.

The next announcement will be on 30th July 2026.