LONDON, July 31, 2026 — The Bank of England kept its benchmark interest rate unchanged at 3.75%, but an unexpectedly large minority of policymakers voted for an immediate increase.
The Monetary Policy Committee supported holding the rate by six votes to three. Catherine Mann, Megan Greene and Chief Economist Huw Pill favoured raising it by a quarter percentage point to 4%.
Economists surveyed before the announcement had generally expected a 7–2 vote. The closer division indicates increasing concern inside the central bank about inflationary pressure, including the effects of higher international energy prices.
Policymakers must also consider signs of slower economic activity. The Bank did not promise a rate increase at its next meeting, meaning future decisions will depend on inflation, wages, employment and growth data.
Why it matters: Bank Rate influences mortgages, savings, consumer credit and business financing across Britain. The more hawkish vote suggests borrowing costs may remain elevated—and could rise—if inflation fails to ease.
