Europe · Business news · Economy · 17 Sept 2026
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The Bank of England's Monetary Policy Committee kept Bank Rate at 3.75%, with Megan Greene, Catherine Mann and Huw Pill voting for an increase to 4%. CPI inflation was 3.1% in August, and the Bank projected around 3¾% in the fourth quarter and slightly above 4% in early 2027. Since its July report, Brent crude had risen 36% to $106 a barrel and UK wholesale gas 78% to 207p a therm, and Ofgem's price cap rises to £1,723 for October to December. The majority judged that a soft labour market, subdued demand and tight financial conditions would restrain inflation, though activity was slightly stronger than expected; the Committee said the risk of second-round effects had risen.
The three-vote minority keeps a UK rate rise on the table if energy costs spread into wages and prices, which matters for gilt-sensitive sectors such as housebuilders (Persimmon, Barratt Redrow, Taylor Wimpey), property trusts and utilities, and for mortgage lenders such as Lloyds and NatWest through loan pricing and credit quality. The higher price cap lifts household energy bills, leaving less to spend in shops and restaurants.
Reported by Bank of England — “Bank Rate maintained at 3.75% - September 2026 Monetary Policy Summary and Minutes” ↗ on 17 Sept 2026.
Official series on 17 Sept 2026 or the last day before it, and the latest observation.
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