Bank of England Base Rate – Current 3.75%, History and Next Review

The Bank of England sets the base interest rate that influences borrowing costs across the United Kingdom. This rate, officially called the Bank Rate, is reviewed eight times per year by the Monetary Policy Committee. Changes to this benchmark affect everything from mortgage repayments to savings returns, making it a critical figure for households and businesses alike.

Understanding the current rate, its recent trajectory, and what may lie ahead helps consumers and investors make informed financial decisions. The Bank Rate stands at 3.75% following the most recent Monetary Policy Committee meeting, with the next scheduled review taking place on 30 April 2026.

What is the current Bank of England base rate?

The current Bank of England base rate is 3.75%, held steady at the March 2026 meeting of the Monetary Policy Committee. This followed a decision on 18 December 2025 when the rate was reduced by 0.25 percentage points from the previous level of 4.00%.

The Monetary Policy Committee voted unanimously to maintain the rate at 3.75% during the March meeting, according to official Bank of England records. This decision came amid renewed inflation concerns stemming from geopolitical disruption in the Middle East, which has affected energy supply chains and pushed the annual inflation rate to 3.3%, above the Bank’s 2% target.

Latest decision details

The March 2026 decision to hold the rate followed a narrow 5-4 vote in February 2026, which had itself maintained the rate at 3.75%. Officials cited disruptions to energy supplies caused by the ongoing Middle East conflict as a primary factor behind the pause in easing monetary policy.

Higher fuel and utility costs have pushed inflation above the Bank’s target, creating uncertainty around the timing of future rate reductions. The Bank of England has indicated it will continue monitoring economic data closely before considering any additional cuts.

• Current Bank Rate: 3.75%
• Latest change: Held on 19 March 2026
• Cumulative cuts since August 2024: 1.50 percentage points
• Previous rate before most recent cut: 4.00%
• Peak rate during this cycle: 5.25% (August 2023)
• Current annual inflation rate: 3.3%

Bank of England base rate history

The Bank Rate has undergone significant fluctuations over the past two decades, reflecting the Bank’s response to major economic events. These movements demonstrate how monetary policy adapts to changing economic conditions, from the aftermath of the global financial crisis to the unprecedented challenges of the COVID-19 pandemic and the subsequent inflation surge.

Key historical changes

Following the 2008 financial crisis, the Bank Rate entered a prolonged period of reduction. By March 2020, amid the COVID-19 pandemic, the rate dropped to its historic low of 0.10%. This emergency cut was part of a coordinated effort to support the economy during nationwide lockdowns and severe economic disruption.

The rate remained near zero throughout the following years until December 2021, when the Bank began a series of increases in response to rising inflation. Between December 2021 and August 2023, the Monetary Policy Committee implemented 14 consecutive rate hikes, pushing the Bank Rate to a 16-year peak of 5.25%.

The easing cycle began in August 2024, with the first reduction bringing the rate from 5.25% to 5.00%. Subsequent cuts followed at roughly quarterly intervals, gradually reducing the rate to the current level of 3.75%.

When is the next Bank of England base rate review or meeting?

The next Monetary Policy Committee review is scheduled for 30 April 2026, according to the Bank of England’s official published calendar. The Bank holds eight MPC meetings annually, typically at six-week intervals, with the committee responsible for setting the Bank Rate to achieve its 2% inflation target.

Following the March 2026 decision to hold rates steady, market participants will be watching economic data releases closely in the weeks leading up to April’s meeting. Inflation figures, employment statistics, and GDP growth reports will all inform the committee’s deliberations.

Upcoming schedule

Beyond the April meeting, the Bank has published a schedule of subsequent review dates through the remainder of 2026. These regular meetings provide multiple opportunities for rate adjustments, though the March decision suggests the committee is in no hurry to resume the easing cycle while inflation remains above target.

The committee has emphasised that its decisions depend on incoming data, particularly regarding inflation trajectories and global economic conditions. Geopolitical factors, including the Middle East situation that influenced the March decision, continue to present upside risks to the inflation outlook.

Bank of England base rate graph and UK interest rates chart

Visual representations of the Bank Rate over time reveal the scale of changes that have occurred in UK monetary policy. The Bank of England provides an official database allowing users to export the complete rate history dating back to 1694, with data available for creating detailed charts spanning the past two decades.

Interactive charts and trends

The twenty-year period from 2006 to 2026 shows dramatic shifts in the Bank Rate. Following a peak above 5.75% in the early 2000s, the rate gradually declined through the financial crisis period, reaching near-zero levels by 2009 where it remained largely stable through most of the following decade.

The COVID-19 pandemic prompted the historic low of 0.10% in March 2020, followed by the steepest rate increases since the 1990s between 2021 and 2023. The subsequent easing cycle has brought the rate down from 5.25% to the current 3.75%, though levels remain considerably higher than the near-zero conditions of the 2010s.

Users can access the Bank of England database to generate custom charts, with options to export data for use in spreadsheet applications. This allows for detailed analysis of specific periods, comparison with other economic indicators, or creation of personalised visualisations tailored to particular research needs.

Will the Bank of England base rate go down?

The prospect of further rate reductions depends largely on how inflation develops in coming months. While the easing cycle that began in August 2024 has brought the rate down by 1.50 percentage points, the March 2026 decision to hold steady reflects uncertainty about the near-term outlook.

Market predictions and factors

Economic forecasts suggest potential for additional cuts if energy supply disruptions ease and inflation continues its path toward the 2% target. However, significant upside risks remain, particularly from geopolitical developments that could further affect global energy markets and prices.

The Bank’s own communications indicate that the committee will remain data-dependent, watching closely for evidence that inflationary pressures have moderated sufficiently to justify resumed easing. Market pricing currently suggests a degree of uncertainty around the timing and magnitude of any future changes.

Timeline of recent Bank Rate changes

The sequence of rate decisions since 2023 illustrates the shift from aggressive tightening to the current easing phase. Below is a chronological record of the most significant changes during this period.

1. 3 August 2023: Bank Rate rises to 5.25%, marking a 16-year peak as the MPC continues its inflation-fighting campaign with a 0.25 percentage point increase.
2. 22 June 2023: A larger 0.50 percentage point increase brings the rate to 5.00%, representing one of the most aggressive single moves in the cycle.
3. 1 August 2024: The easing cycle begins with a 0.25 percentage point cut to 5.00%, the first reduction in over a year and a half.
4. 7 November 2024: Another 0.25 percentage point reduction brings the rate to 4.75%, continuing the gradual easing approach.
5. 6 February 2025: The rate falls to 4.50% following a further 0.25 percentage point cut at the MPC meeting.
6. 7 August 2025: A reduction to 4.00% marks continued progress in the easing cycle, now well below the peak levels of 2023.
7. 18 December 2025: The most recent change brings the rate to 3.75%, a 0.25 percentage point cut implemented before the end of the year.
8. 19 March 2026: The MPC holds the rate at 3.75%, voting unanimously amid renewed inflation concerns from geopolitical disruption.

What is certain and what remains unclear

For readers seeking clarity on the Bank Rate’s trajectory, it helps to distinguish between established facts and areas of genuine uncertainty.

The Bank Rate’s role in the wider economy

The Bank Rate serves as the benchmark for borrowing costs throughout the UK economy. When the Bank of England changes this rate, the effects ripple through mortgage markets, business lending, and consumer credit. Understanding this transmission mechanism helps explain why rate decisions attract significant public attention.

The Monetary Policy Committee sets the rate with the explicit goal of achieving 2% inflation over a two-year horizon. This mandate guides decisions in both directions: raising rates when inflation appears too high, and lowering them when price pressures moderate sufficiently.

The Bank Rate also influences the yields on government bonds, particularly the 30-year gilt yield that often moves closely with longer-term interest rate expectations. These connections mean that monetary policy decisions affect not just immediate borrowing costs but also longer-term financial planning for households and businesses.

For those managing savings or investments, the Bank Rate affects returns on deposits and the pricing of fixed-income securities. The interaction between monetary policy and broader financial conditions means that rate decisions carry implications well beyond the direct effects on bank lending rates.

Sources and official records

The Bank of England serves as the primary source for all official rate decisions and historical data. The Bank Rate database, maintained on the official website, provides the authoritative record of every rate change since 1694.

The Bank Rate is the official interest rate set by the Bank of England’s Monetary Policy Committee. This rate is the rate at which the Bank pays interest on reserves to commercial banks.

— Bank of England official publication

Additional context on inflation developments and economic projections appears in the MPC meeting minutes and the Bank’s quarterly Inflation Report. These publications provide the detailed reasoning behind each decision and the committee’s assessment of economic conditions.

For historical analysis, the Bank of England database offers downloadable data suitable for creating custom charts and performing independent research. External analysts and financial publications supplement official sources with additional commentary and interpretation.

Summary

The Bank of England base rate currently stands at 3.75% following the March 2026 decision to hold steady. This rate represents a significant reduction from the 5.25% peak reached in August 2023, having been lowered six times since August 2024. The committee cited renewed inflation concerns stemming from Middle East tensions and their effect on energy costs as the primary reason for the pause in easing.

The next scheduled review takes place on 30 April 2026, though the timing and direction of any future changes will depend on incoming economic data and the evolution of global conditions. For those tracking the implications for mortgage costs, savings returns, or broader economic conditions, the Bank’s official communications and databases provide the most reliable foundation for analysis. Understanding the distinction between established facts and areas of genuine uncertainty helps consumers and investors navigate an environment where monetary policy continues to evolve.

Those with questions about related financial matters may find the following resources useful: HMRC Savings Tax Letters provides guidance on tax considerations for savings income.