Bank of England holds Bank Rate at 3.75% and votes to run its gilt holdings down to zero

17 September 2026

The Bank of England's Monetary Policy Committee kept Bank Rate at 3.75% at its September 2026 meeting, announced on 17 September 2026.
The vote was 6-3, with three members preferring an increase to 4.0%.
CPI inflation was 3.1% in August 2026 and is expected to rise to about 3.75% in the fourth quarter of 2026 and slightly above 4% in 2027 Q1.
The Committee noted that protracted conflict in the Middle East has contributed to further increases in crude and refined energy prices.
The MPC voted unanimously to reduce its gilt holdings to zero through a multi-year plan, with an annual average reduction of £46 billion to the end of 2034 and £20 billion of annual sales alongside maturing gilts.
A remaining stock of £368 billion is to be unwound, with £120 billion set aside to back banknote issuance.