Back

Bank of England Holds Interest Rate at 3.75% After Close Vote

lite News Desk 2 min read

At a glance

  • The Bank of England kept the Bank Rate at 3.75% on 5 February 2026
  • The Monetary Policy Committee vote was 5-4 in favour of holding rates
  • The Bank lowered its 2026 growth forecast to around 0.9%

The Bank of England’s Monetary Policy Committee decided on 5 February 2026 to maintain the Bank Rate at 3.75% following a narrow vote. This decision came after a previous rate reduction in December 2025.

The Committee’s vote was split, with five members supporting the decision to hold the rate and four members voting against. The Bank stated that further interest rate cuts are likely later in 2026, according to its published outlook.

The Bank also updated its economic projections, lowering the expected growth rate for the UK economy in 2026 from around 1.2% to approximately 0.9%. The Bank’s latest forecast anticipates a rise in unemployment to about 5.3% during the same period.

Inflation is projected by the Bank to return to its 2% target by spring 2026, based on current projections. These updates reflect the Bank’s ongoing assessment of economic conditions and monetary policy requirements.

What the numbers show

  • The Bank Rate remains at 3.75% following a 5-4 vote
  • UK economic growth forecast for 2026 was reduced to 0.9%
  • Unemployment is expected to reach about 5.3% in 2026
  • Inflation is projected to return to 2% by spring 2026

The decision to hold the Bank Rate follows a quarter-point reduction that took place in December 2025. The Bank’s actions are part of its regular review of monetary policy in response to changing economic indicators.

The Bank’s statement indicated that additional rate cuts are likely to be considered later in the year, depending on future economic developments. These potential adjustments will be guided by ongoing assessments of inflation, growth, and employment data.

The Bank’s forecasts and policy decisions are intended to support the stability of the UK economy. The Monetary Policy Committee will continue to monitor economic trends and update its guidance as new data becomes available.

* This article is based on publicly available information at the time of writing.

Sources and further reading

Related Articles

  1. The US initiated Project Vault, a $12 billion minerals stockpile effort, with $10 billion financing from the Export-Import Bank, according to reports.

  2. A partial shutdown commenced on January 31, 2026. The House is set to vote on the funding package on February 2, 2026, according to reports.

  3. A partial shutdown commenced on January 31, 2026. The House plans to vote on the Senate's funding agreement by February 2, according to reports.

  4. The U.S. identifies 60 critical minerals for clean energy. Australia invests AU$1.2 billion to enhance its mineral reserves, according to reports.

  5. A proposal outlines a 10 percent cap on credit card interest rates, set to take effect on January 20, 2026, according to reports.

More on Politics

  1. A proposal outlines two main options for restoration, with a budget cap of £3 billion over seven years, according to the Client Board.

  2. The New START Treaty expired on February 5, 2026, ending limits on U.S. and Russian nuclear arsenals, according to official statements.

  3. ArcelorMittal's net income rose 72% to $2.975 billion in the first nine months of 2025, despite a 2.8% decline in revenue, according to the company.

  4. A position statement issued on February 3, 2026, advises postponing surgeries for minors until age 19, according to the ASPS.