Bank Rate, United Kingdom
Bank Rate in the United Kingdom was 3.75% in , unchanged from and down 0.25 pp from a year earlier. Over the latest 12 readings it moved between 3.75% and 4.00%. The next reading is for October 2026. Source: Bank of England, Bank of England Database IUMABEDR; history from .
Key takeaways
- Bank Rate at 3.75% in beats 69% of readings since (Bank of England).
- Against a ten-year average of 2.02%, Bank Rate is above that norm by 1.73 pp (Bank of England).
- On Bank Rate, the United Kingdom ranks 3rd highest of 4 countries (national publishers).
What this indicator is and why it matters
Bank Rate is the Bank of England's main policy rate: the interest rate it pays on the reserves that commercial banks and building societies hold at the Bank. The Monetary Policy Committee sets it at eight scheduled meetings a year, with the aim of keeping consumer price inflation at the government's 2% target. The series here is the monthly average of the daily rate from the Bank of England Database, so a month in which the rate changed shows a value between the old rate and the new one.
Bank Rate passes through to most borrowing and saving in the United Kingdom. Tracker mortgages and many business loans are priced directly off it, savings rates follow it with a delay, and it anchors SONIA, the overnight rate that sterling markets use as their benchmark. For banks, the gap between Bank Rate and what they pay depositors is a large part of their margin.
When reading it, compare it with CPI inflation: a Bank Rate above inflation means policy is holding back spending in real terms. Most UK mortgages are on fixed rates, which follow expected rates through gilt yields rather than Bank Rate itself, so a change reaches many households only when their fixed deal ends.
Where it sits in history
Bank Rate is at its lowest since , when it stood at 3.50%. Within ten years, Bank Rate beats 64% of readings.
| Window | Latest is higher than | Average | Highest | Lowest |
|---|---|---|---|---|
| Since January 2006 | 69% of readings | 1.89% | 5.75% | 0.10% |
| Last ten years | 64% of readings | 2.02% | 5.25% | 0.10% |
| Last five years | 28% of readings | 3.61% | 5.25% | 0.10% |
- Bank Rate 3.8%
Recent readings
Last five years
- Bank Rate 3.8%
Latest readings
| Period | Value | Change from previous |
|---|---|---|
| 3.75% | 0.00 pp | |
| 3.75% | 0.00 pp | |
| 3.75% | 0.00 pp | |
| 3.75% | 0.00 pp | |
| 3.75% | 0.00 pp | |
| 3.75% | 0.00 pp | |
| 3.75% | 0.00 pp | |
| 3.75% | 0.00 pp | |
| 3.75% | -0.15 pp | |
| 3.90% | -0.10 pp | |
| 4.00% | 0.00 pp | |
| 4.00% | 0.00 pp | |
| 4.00% | -0.05 pp |
Annual averages
By calendar-year average, Bank Rate peaked in (5.51%) and bottomed in (0.11%). 2026 to date: 3.75%, after 4.25% in 2025.
| Year | Average | Low | High | Readings |
|---|---|---|---|---|
| 2026 (part year) | 3.75% | 3.75% | 3.75% | 9 |
| 2025 | 4.25% | 3.90% | 4.75% | 12 |
| 2024 | 5.11% | 4.75% | 5.25% | 12 |
| 2023 | 4.68% | 3.50% | 5.25% | 12 |
| 2022 | 1.46% | 0.25% | 3.25% | 12 |
| 2021 | 0.11% | 0.10% | 0.17% | 12 |
| 2020 | 0.23% | 0.10% | 0.75% | 12 |
| 2019 | 0.75% | 0.75% | 0.75% | 12 |
| 2018 | 0.60% | 0.50% | 0.75% | 12 |
| 2017 | 0.29% | 0.25% | 0.50% | 12 |
| 2016 | 0.40% | 0.25% | 0.50% | 12 |
| 2015 | 0.50% | 0.50% | 0.50% | 12 |
| 2014 | 0.50% | 0.50% | 0.50% | 12 |
| 2013 | 0.50% | 0.50% | 0.50% | 12 |
| 2012 | 0.50% | 0.50% | 0.50% | 12 |
| 2011 | 0.50% | 0.50% | 0.50% | 12 |
| 2010 | 0.50% | 0.50% | 0.50% | 12 |
| 2009 | 0.64% | 0.50% | 1.60% | 12 |
| 2008 | 4.68% | 2.14% | 5.50% | 12 |
| 2007 | 5.51% | 5.17% | 5.75% | 12 |
| 2006 | 4.64% | 4.50% | 5.00% | 12 |
Same measure in other countries
Bank Rate in the United Kingdom is above 1 of the other 3 comparable readings. Four countries compared.
| Country | Series | Latest | Period | Change on a year earlier |
|---|---|---|---|---|
| United Kingdom | Bank Rate | 3.75% | -0.25 pp | |
| United States | Effective federal funds rate | 3.75% | September 2026 | -0.47 pp |
| Canada | Bank of Canada policy rate (target for the overnight rate) | 2.25% | September 2026 | -0.25 pp |
| Australia | RBA cash rate target | 4.36% | September 2026 | +0.76 pp |
How is it measured?
Monthly average of official Bank Rate.
Bank of England publishes Bank Rate monthly in Bank of England Database IUMABEDR, in percent. Code: IUMABEDR. Monthly basis: each month shows the average of the daily values in that month. Method for Bank Rate.
Questions
How high is Bank Rate in the United Kingdom now?
3.75% in (Bank of England), down 0.25 pp on a year earlier.
Is Bank Rate high by historical standards?
Bank Rate beats 69% of readings since ; its peak was 5.75% (), its low 0.10% ().
When is Bank Rate updated?
Monthly, in Bank of England Database IUMABEDR. Next reading: October 2026.
Where can I check Bank Rate at the source?
Bank of England data, code IUMABEDR.