Bank of England HOLDS base rate at 3.75%

We have had a stay of execution, but for how long? With the conflict in Iran still leading to higher energy costs, it's only a matter of time before the Bank of England follows the Federal Reserve and the European Central Bank in raising rates.

The correct decision. Fuel and Gas prices have pushed up inflation, so it doesn’t reflect the state of the nation. It doesn’t make sense to push up interest rates when people are struggling and spending more.

The decision to hold rates at 3.75% is no surprise. The bigger question is what comes next. Inflation remains uncomfortable and energy costs create further pressure, so households and businesses shouldn’t build plans around imminent rate cuts. My message to clients is simple...assume borrowing costs remain higher for longer, review mortgages and debt early, and make sure cash is working hard. If rates fall, that’s a bonus, not something your financial plan should depend on in the short-term.

Holding at 3.75% is the right call. Inflation at 3.1% and three MPC members pushing for a hike made this closer than markets expected, but raising rates now would have been a reaction to energy costs the Bank can't control anyway. Borrowers shouldn't read this as calm skies ahead. Swap rates have already priced in caution, and lenders are holding firm on the higher fixed rates we've seen through the summer. My advice to anyone coming off a deal in the next six months: don't wait for a rate cut that isn't coming, get advice and lock in a rate you can live with. The biggest risk isn't today's decision, it's borrowers gambling on a fall the Bank has given no signal it intends to deliver.

This is the right decision by the Bank of England. The markets need stability and with inflation being led by oil prices, any increase in base rate would be counterintuitive and premature in advance of the Autumn budget. We hope this will calm the SWAP markets, which dictate the pricing of fixed rates on mortgages.

Holding at 3.75% was the least surprising and, in my view, the most responsible decision. With inflation back at 3.1%, a cut would have risked moving too soon, while an increase would have added unnecessary pressure to households and businesses. The 6-3 split is the more interesting signal because it shows there is still real disagreement over what should happen next.

For mortgage borrowers, today’s hold does not mean fixed rates will stand still. Fixed pricing is driven largely by swap rates and lender funding costs, so products could still be repriced even while Bank Rate is unchanged. Tracker borrowers will see no immediate change. Anyone whose deal ends within six months should review options now and keep them under review.

Savers may benefit from deposit rates remaining higher for longer, but banks can change savings rates independently, so loyalty should not be assumed to pay.

A hold in Bank Rate does not mean a hold in mortgage costs. For property investors using bridging finance, the crucial question is how much their next lender will advance when the short-term loan needs repaying.

Through Bridging Loan Directory’s reporting, brokers and lenders have described cases where refinancing no longer supports the original exit plan, requiring additional equity or a revised funding structure. Higher mortgage rates can affect both the monthly payment and the amount a landlord can borrow against the rent.

Today’s hold offers some breathing space, but it does not reverse mortgage repricing that has already happened. A borrower can have kept to their refurbishment budget and still face a funding gap at the refinancing stage.

I have to say I'm a bit surprised by this decision. Although I wouldn't have welcomed an increase, based on inflationary and bond market pressures, and the Fed increasing last night, I was of the mind the Old Lady might have increased today.

Given the rate rises in Europe and America this comes as a welcome surprise. It does feel that a rate rise is not far away though and so we continue to advise clients to lock in mortgage rates as soon as possible.

Of the G3, the BoE is the outlier, holding rates while the Fed and ECB both hiked this month. Typical: the Bank's always late to the party. The 6–3 MPC majority reckons existing restraint and labour market slack are containing second-round effects and a further hike would only inflict damage without touching global energy prices. The three dissenters disagree: with inflation forecast above 4% by early 2027, they want tightening now, before higher prices harden into wage settlements. For borrowers, tracker and variable mortgage payments hold steady, but fixed-rate deals stay elevated as swap rates price in prolonged energy volatility and geopolitical risk. Savers still get decent easy-access returns, for now though rising inflation will eat real returns unless you lock into a competitive fixed-term bond before any easing cycle begins. The immediate casualty is the Pound, losing ground on the interest-rate differential against its main rivals.

Holding was the right call. With inflation at 3.1%, cutting into above-target inflation would have been very hard to defend. The detail that matters is the 6-3 split, and that the three dissenters wanted a hike. So the live argument on the committee has become whether rates need to go higher, which is a long way from the cuts many were hoping for. For mortgage holders there's no relief in this. Fixed rates are priced off the swap market, which already reflects higher-for-longer, so today's hold changes little, and anyone rolling off a cheap fix is looking at a higher payment. It doesn't signal a fresh surge either, with the committee split and the economy far from booming. Savers will have their own read. On the mortgage side, the next real mover is the Budget, and until then this is a market holding its breath.

It was inevitable that Base Rate would remain unchanged, but that doesn't rule out changes before the end of the year. It's a difficult decision; inflation is not being pushed by unruly high street spending; it's basic fuel costs that are outside of everyone's remit. Those gas and electric bills may increase by up to 25% by the start of 2026, so consumers are already being penalised, without any base rate increase on top. Mortgage rates will inevitably stay higher for longer; you don't need a base rate increase to push those costs further, but savers may have a silent fist pump.

This hold was always on the cards. Core and services inflation were steady enough to give the Bank its get-out clause this time, but I don't think it will get another one. A 6-3 vote tells you the pressure is building.

Borrowers shouldn't mistake this for good news. Lenders have already been repricing upwards this week on the back of rising gilt yields, and I think a base rate rise is coming. If not next time, then the time after.

Unless the Budget restores confidence in government borrowing and the global picture settles down, it's edge-of-your-seat time.

If your fixed rate ends in the coming months, don't sit and wait. Get advice and get a rate secured.

Savers may be the winners here, as any rise should feed through to savings rates.

A hold is not a rescue, but better than most were expecting. Three of the nine on the committee wanted rates higher, and that's the direction of travel now, whatever the headline says. Inflation is back up to 3.1%, fuel is driving it, and the cuts everyone was promised in January have been quietly cancelled. The Government will blame the rest of the world, but it has spent a year talking about growth while doing nothing about the bit it controls.

Such a strong vote to hold the Base Rate today will be seen as good news and give the markets some positivity, how long the Base Rate remains at 3.75% will be the questions being asked. With inflation increasing over 3% this week along with the escalation in the Middle East, a Base Rate increase before the end of the year is looking likely. The longer the conflict continues, the more pressure that it will have on inflation and in turn the MPC to make a decision.

The Bank of England has held the base rate at 3.75%, with the MPC voting 6–3 to keep rates unchanged.

On balance, this looks like a cautious decision. Inflation remains a concern, but the Bank may also be wary of putting further pressure on households and businesses too quickly.

The 6–3 split is important. It does not mean a rate rise is guaranteed next time, but it does show there is still pressure within the MPC to tighten policy further.

For mortgage holders, today’s decision means no immediate change to the base rate, but anyone on a tracker, variable rate, or coming to the end of a fixed deal should keep reviewing their options.

For savers, rates may remain relatively attractive for now, although individual providers can still move their savings rates at any time.

A hold today — but definitely not a reason to switch off.

Borrowers have just been given a warning shot. This was not a comfortable hold. A 6–3 vote means a third of the Monetary Policy Committee wanted rates higher, and that should make mortgage borrowers sit up and take notice. At the previous June meeting, only two members voted for an increase and by July that had risen to three. The danger now is that borrowers wait for cuts that may not come soon, while fixed mortgage rates continue moving the other way. Bank Rate can stay at 3.75% and mortgage pricing can still rise. Anyone coming off a fixed deal should be reviewing options now, not in three months’ time. Locking something in does not always mean you are stuck with it if pricing improves, but doing nothing risks watching today’s deal disappear. The message is clear, don’t confuse ‘hold’ with ‘safe’. The direction of travel has become much more uncomfortable for borrowers.

A hold at 3.75% surprised more of us than the 6-3 vote suggests. With the Fed hiking yesterday, SONIA swaps climbing and lenders repricing almost daily, plenty of brokers had a rise pencilled in. This is a pause, not a direction; three MPC members already want higher, and inflation at 3.1% gives them cover next time.

For borrowers, nothing changes today, but fixed rates are set by swaps, not Bank Rate, and those have already moved. If your deal ends within six months, secure something now rather than wait for a cut nobody has promised. Savers get a little longer at decent rates; how long is anyone's guess.

Today’s hold does not mean mortgage rates will stand still. Fixed mortgage pricing is driven heavily by wholesale funding costs and market expectations, which is why borrowers have already seen lenders increasing rates even with Bank Rate unchanged.

The 6-3 vote also shows there is still real uncertainty over what comes next. For borrowers, the important thing is not to assume a hold today means cheaper mortgages tomorrow. Reviewing options early remains sensible.