UK Keeps Base Interest Rate Unchanged at 3.75%

Bank of England Keeps Rate Unchanged for Sixth Consecutive Meeting

The Bank of England (BOE), the central bank of the United Kingdom, kept its base interest rate unchanged at 3.75% on September 17, 2026 (local time).

A view of the Bank of England, the central bank of the United Kingdom. Photo by Yonhap News

The Bank of England last lowered its rate by 0.25 percentage points in December last year, and has maintained the current rate for six consecutive policy meetings throughout this year. Out of the nine members of the Monetary Policy Committee, six voted to keep the rate at 3.75%, while three expressed the view that it should be raised by 0.25 percentage points to 4.00%.

BOE Governor Andrew Bailey stated, "So far, the impact of rising global energy costs on UK prices and wage decisions has been limited," and added, "The longer volatility persists, the greater the impact on inflation will become, and the likelihood that we may need to raise the base rate to return inflation to our 2% target will also increase."

The previous day, the US central bank, the Federal Reserve (Fed), raised its base interest rate by 0.25 percentage points to a range of 3.75%–4.00%. The European Central Bank (ECB) also raised its three key policy rates by 0.25 percentage points each on September 10.

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