This article is for general information only. It is not financial advice and does not recommend a specific lender or product.

The Bank of England's Monetary Policy Committee (MPC) voted to hold Bank Rate at 3.75% at its May 2026 meeting. There was no cut and no rise.

What changed?

  • Bank Rate stays at 3.75%. It was not lowered at this meeting.
  • This follows a period in which the MPC has been cautious about the pace of rate reductions.
  • The decision was announced on 8 May 2026.

Why it matters

Bank Rate is the base from which many variable-rate products are priced. When it stays flat, headline borrowing costs for new personal loans, credit cards and variable-rate mortgages tend not to move significantly in either direction.

A hold is not a cut. Borrowers who were expecting cheaper borrowing costs on the back of a rate reduction will not see that benefit from this decision.

Who may be affected?

Personal loan applicants Personal loan rates are set by individual lenders and are influenced by, but not directly tied to, Bank Rate. A hold means there is no immediate downward pressure on new loan pricing from this decision. Representative APRs advertised by lenders may not shift.

Variable-rate mortgage holders Tracker mortgages linked to Bank Rate will see no change. Standard variable rate (SVR) mortgages are at each lender's discretion, but a hold gives lenders no Bank Rate prompt to adjust.

Fixed-rate mortgage applicants Fixed rates are more influenced by swap rates and market expectations than by Bank Rate directly. A hold that the market already anticipated may have little immediate effect on fixed-rate pricing.

Savers No rate cut means no automatic reduction in savings rates linked to Bank Rate. At the time of writing, whether individual providers adjust their savings products is a separate decision for each institution.

What to check

  • If you have a tracker mortgage, your monthly payment is unchanged following this decision.
  • If you are shopping for a personal loan, compare the representative APR across lenders rather than assuming rates have moved because of this announcement.
  • If you are due to remortgage, it can help to check current fixed-rate offers independently of this decision, as fixed rates may already reflect where markets expect Bank Rate to go next.

What to read next

For a longer explanation of how interest rates affect what you pay on a loan, see the Personal loans guide and the Loan interest rates guide.

Sources

Related guides