Bank of England rate decision
The gist
The Bank of England raised its key rate by 25 basis points to 4% on an 8-1 vote.
UK borrowers face higher mortgage costs as inflation heads toward almost 5%.
How it unfolded
- Aug 7, 2025The Bank cut Bank Rate by 25 basis points to 4.00%.
- Dec 18, 2025The Bank cut by 25 basis points to 3.75%.
- Feb 5, 2026The Bank held at 3.75% on a 5-4 vote, with four members backing a cut.
Key terms
- Bank Rate
- The interest rate the Bank of England charges financial institutions for overnight loans, its key monetary policy tool.
- basis points
- One hundredth of one percentage point, used to express changes in interest rates.
- Monetary Policy Committee
- A committee of the Bank of England that meets eight times a year to set the UK's official interest rate.
Source: Wikipedia