Bank of England Holds Rate at 3.75% as Three Policymakers Push for a Hike

The Bank of England left its benchmark Bank Rate unchanged at 3.75% on July 30, 2026, extending a hold that has now lasted five consecutive Monetary Policy Committee meetings. The decision followed a two-day meeting that concluded July 29, and split the nine-member committee 6-3.

The three dissenters — Megan Greene, Huw Pill, and Catherine Mann — voted for an immediate quarter-point increase to 4%, arguing that inflation risks were tilted to the upside. Their concern centers on energy prices, which have stayed elevated and volatile since renewed conflict in the Middle East disrupted regional supply earlier this year.

The majority's decision to hold comes even though UK inflation itself has been cooling: consumer prices rose 2.6% in the twelve months to June, down from 2.8% in May, according to the Office for National Statistics. But the MPC's own central projection shows that easing trend reversing, with CPI inflation forecast to climb back to around 3.2% by the fourth quarter of 2026 as higher energy costs work their way through the economy.

The Bank's next scheduled decision falls in September 2026.