The Bank of England kept its base rate at 3.75% at its September meeting, announced on 17 September 2026. The vote was close: six members wanted to hold, three wanted to raise rates to 4%.
Why the Bank held
Inflation is moving the wrong way. Prices rose 3.1% in the year to August, above the Bank’s 2% target, and most of the gap comes from energy, especially fuel. The Bank expects inflation to rise to about 3.75% by the end of 2026 and slightly above 4% early in 2027. The three members who voted for a rise were Megan Greene, Catherine Mann and Huw Pill.
What it means for you in London
- Tracker and variable mortgages: no change for now, since they follow the base rate.
- Fixed-rate mortgages: these are priced on what markets expect rates to do next. With three votes for a rise, cheaper fixes are less likely in the short term.
- Savings: easy-access rates tend to follow the base rate, so they should hold steady for now.
- Renters: no direct effect, though landlords with mortgages feel any change in rates.
This is general information, not financial advice. If you are about to remortgage, a broker can show you what is available for your situation.
Next decision
The next announcement is scheduled for Thursday 5 November, Bonfire Night. With London house prices down 3.3% in a year, it will be watched closely.
Sources
- Bank of England: Monetary Policy Summary, September 2026
- MTS Insights: Bank of England decision, September 2026
Last checked: 9 October 2026. Dates, prices and times can change, so check with the organiser before you travel. Photo: George Rex (2014) / Wikimedia Commons, CC BY-SA 2.0.
