Story perspectives

BoE holds Bank Rate at 3.75% despite inflation rise

By Drooid · Sep 17, 2026, 1:57 PM UTC · How we work

Summary

Story summary

The Bank of England left its Bank Rate at 3.75% on 17 September 2026.
Monetary Policy Committee voted 6-3 to hold the rate.
Three members supported a 25-basis-point rise to 4%.
Consumer price inflation rose to 3.1% in August, above the BoE’s 2% target.
Governor Andrew Bailey warned that prolonged energy-price volatility from the Iran war may force a future rate increase.

History

Historical Context

Following the 1979 Iranian Revolution, world oil output fell about 4 % and prices more than doubled, triggering stagflation and a prolonged oil-price decline that saw average crude drop from roughly $105 per barrel in 1981 to $36 by 1986. Confronted with renewed Iran-war energy volatility, the Bank of England under Governor Andrew Bailey left its rate at 3.75 % on 17 September 2026.

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Story summary

The Bank of England left its Bank Rate at 3.75% on 17 September 2026.
Monetary Policy Committee voted 6-3 to hold the rate.
Three members supported a 25-basis-point rise to 4%.
Consumer price inflation rose to 3.1% in August, above the BoE’s 2% target.
Governor Andrew Bailey warned that prolonged energy-price volatility from the Iran war may force a future rate increase.

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