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<html><head></head><body><h1 itemprop="name">Bank rate maintained at 3.75% - September 2026 Monetary Policy Summary and Minutes</h1><div class="published-date">
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17 September 2026
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</div><p>At its meeting ending on 16 September 2026, the Monetary Policy Committee (MPC) voted by a majority of 6–3 to maintain Bank Rate at 3.75%. Three members voted to increase Bank Rate by 0.25 percentage points, to 4%. </p><p>Protracted conflict in the Middle East has contributed to further increases in crude and refined energy prices since the previous meeting, which remain more volatile and higher than pre-conflict. UK CPI inflation increased to 3.1% in August and is likely to rise further over coming quarters. Monetary policy is being set to ensure inflation comes down to 2% sustainably as the economy adjusts to the energy shock. The policy stance required to achieve this will depend on the scale and duration of the shock and how it propagates through the economy. </p><p>There has been little evidence so far of material second-round effects in price and wage-setting. However, the risk of such effects, against which policy needs to lean, is greater the longer higher energy prices persist or are more volatile. Activity has been slightly stronger than expected, although soft labour market conditions, and the higher interest rates faced by households and businesses since the conflict began, will act to reduce inflation over time. Overall, the Committee judges that the risks to the inflation outlook are tilted to the upside, and more so than at the time of the July Monetary Policy Report, although there remains scope for the outlook to change materially as events in the Middle East unfold.</p><p>The Committee judges that it is appropriate to maintain Bank Rate at this meeting. The Committee stands ready to act as necessary to ensure that CPI inflation remains on track to meet the 2% target in the medium term.</p><p>At this meeting, the MPC also voted unanimously to reduce the stock of UK government bond purchases held for monetary policy purposes, and financed by the issuance of central bank reserves, to zero. This will be conducted through a multi-year plan, such that the remaining stock is unwound at an annual average pace of £46 billion by the end of 2034, through annual sales of £20 billion alongside maturing gilts.</p><p>1: Before turning to its immediate policy decisions, the Monetary Policy Committee (MPC) discussed recent developments in global and UK economic and financial conditions, and how these could affect the medium-term outlook and the MPC’s Bank Rate decision. The Committee also discussed its plan for quantitative tightening. </p><p>2: Global energy prices had risen significantly since the July Monetary Policy Report and had continued to be volatile, reflecting events in the Middle East and in Ukraine and Russia. The spot prices of Brent crude and UK wholesale gas had risen by 36% and 78% respectively since the period leading up to the July Report. At close of business on 14 September, the Brent oil price had reached $106 per barrel and the UK wholesale gas price had reached 207 pence per therm. Futures curves continued to slope downwards for both oil and gas, although if there were to be a resolution to the conflict it was likely that any normalisation of energy supply would be slow and gradual. </p><p>3: Pressures on refineries in several countries meant that crack spreads – the difference between the prices of refined petroleum products and Brent crude oil – had remained well above their pre-conflict levels. The prices of gasoline, diesel and jet fuel had all increased since the July Report to a broadly similar extent as for Brent crude.</p><p>4: Increases in oil, gas and refined product prices since the start of the conflict were already having a direct impact on consumer price inflation in major economies. However, as was the case for the United Kingdom, there was not yet judged to have been a significant impact of the energy shock on other consumer goods prices in the euro area or the United States through firms’ supply chains. These effects were expected to build over the next few quarters.</p><p>5: The Committee continued to be attentive to other sources of price pressure in the global economy, which could present additional upside risks to UK inflation via import prices. The S&P index for global agricultural and livestock prices had already risen by around 5% since the July Report, and could be pushed higher if harvests were affected adversely by an unusually severe El Niño event. And the continued significant demand for artificial intelligence (AI)-related technology goods and primary products was driving price pressures for affected sectors.</p><p>6: UK financial conditions had tightened further since the July Report, driven by increases in short-term overnight index swap (OIS) rates. There had been similar moves in these rates in the United States and in the euro area. As had been the case since February, this co-movement reflected the global nature of the energy supply shock and its implications for inflation.</p><p>7: There had continued to be full and fLine truncated
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