Bank of England Holds Rates at 3.75% as Inflation Rises

In mid-September 2026, the Bank of England kept its key interest rate at 3.75%, even as UK inflation reached a five-month high and is expected to top 4%. The central bank also changed its plans for selling government bonds, halting sales of long-dated gilts and rewriting how it unwinds its quantitative easing program. It said rates are likely to rise in the future.

The decision came shortly after the U.S. Federal Reserve raised its own rates. The Bank also warned that energy prices could increase further. Separately, the UK Labour government appointed a top trade union official to the Bank of England's board. In an unrelated event, King Charles met with artificial intelligence leaders.