Bank of England held Bank Rate at 3.75% on narrow 5–4 vote

The Bank of England's Monetary Policy Committee voted by five to four to hold Bank Rate at 3.75%, the Bank announced on 5 February 2026.

Governor Andrew Bailey, Megan Greene, Clare Lombardelli, Catherine L Mann and Huw Pill voted to maintain the rate. Sarah Breeden, Swati Dhingra, Dave Ramsden and Alan Taylor voted for a 0.25 percentage point reduction to 3.5%. According to the minutes, the members favouring a cut judged that the risk from greater inflation persistence had receded materially and that monetary policy was still too restrictive.

INFLATION SEEN BACK NEAR TARGET FROM APRIL

The committee noted that CPI inflation had fallen from 3.8% in September 2025 to 3.4% in December, and said it expected inflation to fall back to around the 2% target from April. Energy price developments, including measures announced in the 2025 Budget, were among the factors expected to pull inflation lower.

On activity, the committee said underlying GDP growth had remained below estimates of potential, and that intelligence from the Bank's Agents pointed to a subdued outlook for demand.

FURTHER EASING A CLOSER CALL

In its guidance, the MPC said: “On the basis of the current evidence, Bank Rate is likely to be reduced further. Judgements around further policy easing will become a closer call.” The committee said the extent and timing of any further reductions would depend on the evolution of the outlook for inflation.

The decision was published alongside the minutes of the meeting and the February Monetary Policy Report, which contained the Bank's updated economic projections.