The Bank of England has decided to keep interest rates at 3.75%, a level established since December 2025. Furthermore, the institution warns of possible increases due to market volatility and inflation.
The Bank of England has opted to maintain interest rates at 3.75%, a level that has been held since December 2025, according to expansion.com. This decision contrasts with the recent moves by the Federal Reserve of the United States and the European Central Bank, which have raised their rates.
The Monetary Policy Committee of the bank has divided its votes, with six of the nine members supporting the decision to keep rates unchanged and three suggesting an increase to 4% to combat inflation, which stood at 3.1% in August.
The governor of the Bank of England, Andrew Bailey, has indicated that increases are likely in future meetings. In his words, "the longer this volatility [due to the conflict in Iran and oil supply issues] lasts, the greater the impact on inflation, and the more likely it is that we will need to raise the rate."
Additionally, the entity has decided to reduce its public debt sale programme, decreasing from £70 billion to £46 billion annually, which is equivalent to €53.6 billion. This will remain in place until 2034, while retaining gilts worth £488 billion as part of its strategies since the financial crisis.
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