The Bank of England base rate (Bank Rate) is 3.75%, unchanged since 18 December 2025. On 17 September 2026 the Monetary Policy Committee held Bank Rate at 3.75% by a vote of 6 to 3; the three other members voted to raise it to 4%. The next decision is on 5 November 2026. Variable-rate business loans usually move with Bank Rate; fixed rates do not change during the fixed period.
At a glance
- Bank Rate
- 3.75%
- Set on
- 18 December 2025
- Last decision
- 17 September 2026: held
- Next decision
- 5 November 2026
- Average rate on new bank loans to SMEs (August 2026)
- 6.63%
What is the Bank of England base rate?
Bank Rate is the UK's main interest rate. It is the rate the Bank of England pays banks, building societies and other institutions that hold money with it, and it shapes the rates those lenders charge on loans and pay on savings. When Bank Rate rises, borrowing usually costs more; when it falls, borrowing usually gets cheaper.
The Monetary Policy Committee (MPC), nine members, sets Bank Rate at eight meetings a year to keep inflation at the government's 2% target. "Base rate" is the everyday name; the Bank calls it Bank Rate.
What did the Bank decide at its last meeting?
On 17 September 2026 the MPC held Bank Rate at 3.75% by a vote of 6 to 3; the three other members voted to raise it to 4%. Bank Rate has been 3.75% since 18 December 2025, when the committee cut it from 4% by a vote of 5 to 4. It held the rate at each of its meetings in 2026 so far.
We update this page after each MPC decision. It was last checked on 15 October 2026. For the official figure, see the Bank of England's Bank Rate page listed in the sources.
How does Bank Rate affect business loans?
- Variable and tracker loans: many bank loans, overdrafts and commercial mortgages are priced as a margin over Bank Rate, so the rate you pay moves when Bank Rate does, usually from the next payment date in the agreement.
- Fixed-rate loans: the rate is set when you take the loan and does not change for the fixed period. Lenders price new fixed rates from their own funding costs, which reflect where markets expect Bank Rate to go, so they can move before Bank Rate does.
- Short-term and specialist finance: merchant cash advances, many online loans and bridging loans are priced mainly on the lender's view of risk, so Bank Rate is a smaller part of the price.
The Bank of England's average rate on new bank loans to SMEs was 6.63% in August 2026, against 6.35% in August 2025. It sits well above Bank Rate because lenders add a margin for risk and costs. The business loan calculator shows what a change of rate does to a monthly repayment, and our guide to business loan interest rates explains what else moves the price.
How has Bank Rate changed since 2008?
Bank Rate has changed 33 times since February 2008. It fell to 0.5% in March 2009 and stayed there for over seven years, reached a low of 0.1% in March 2020, then rose 14 times from December 2021 to 5.25% in August 2023, its highest since early 2008, before the cuts that began in August 2024.
| Date | New rate | Change (percentage points) |
|---|---|---|
| 18 December 2025 | 3.75% | −0.25 |
| 7 August 2025 | 4% | −0.25 |
| 8 May 2025 | 4.25% | −0.25 |
| 6 February 2025 | 4.5% | −0.25 |
| 7 November 2024 | 4.75% | −0.25 |
| 1 August 2024 | 5% | −0.25 |
| 3 August 2023 | 5.25% | +0.25 |
| 22 June 2023 | 5% | +0.50 |
| 11 May 2023 | 4.5% | +0.25 |
| 23 March 2023 | 4.25% | +0.25 |
| 2 February 2023 | 4% | +0.50 |
| 15 December 2022 | 3.5% | +0.50 |
| 3 November 2022 | 3% | +0.75 |
| 22 September 2022 | 2.25% | +0.50 |
| 4 August 2022 | 1.75% | +0.50 |
| 16 June 2022 | 1.25% | +0.25 |
| 5 May 2022 | 1% | +0.25 |
| 17 March 2022 | 0.75% | +0.25 |
| 3 February 2022 | 0.5% | +0.25 |
| 16 December 2021 | 0.25% | +0.15 |
| 19 March 2020 | 0.1% | −0.15 |
| 11 March 2020 | 0.25% | −0.50 |
| 2 August 2018 | 0.75% | +0.25 |
| 2 November 2017 | 0.5% | +0.25 |
| 4 August 2016 | 0.25% | −0.25 |
| 5 March 2009 | 0.5% | −0.50 |
| 5 February 2009 | 1% | −0.50 |
| 8 January 2009 | 1.5% | −0.50 |
| 4 December 2008 | 2% | −1.00 |
| 6 November 2008 | 3% | −1.50 |
| 8 October 2008 | 4.5% | −0.50 |
| 10 April 2008 | 5% | −0.25 |
| 7 February 2008 | 5.25% | −0.25 |
When is the next Bank of England rate decision?
The Bank publishes its decision dates in advance. Decisions are announced at 12 noon on these days:
- 5 November 2026
- 17 December 2026
- 4 February 2027
- 18 March 2027
- 29 April 2027
- 17 June 2027
- 29 July 2027
- 16 September 2027
- 4 November 2027
- 16 December 2027
What should a business do when rates change?
- Check whether each loan, overdraft and mortgage is fixed or variable, and when any fixed period ends.
- Work out the effect of a quarter-point rise on variable-rate payments, so a change does not surprise your cash flow.
- Look at early repayment charges before refinancing: they can outweigh a lower rate.
- Compare the total cost in pounds, fees included, not just the headline rate.
Capzy is a credit broker, not a lender, and is paid by the lender. If you are weighing refinancing a business loan or a new commercial mortgage, you can check your funding options with a soft search that does not affect your credit score. Any offer is subject to status and lender criteria.
Sources
- Official Bank Rate history, Bank of England
- Interest rates and Bank Rate, Bank of England
- Monetary Policy Summary, September 2026, Bank of England
- Monetary Policy Summary, December 2025, Bank of England
- Upcoming MPC dates, Bank of England
- Money and Credit - August 2026, Bank of England
Capzy is a credit broker, not a lender. We get paid by the lender. This page is general information, not financial, tax or legal advice. Finance is subject to status, lender criteria and affordability; rates and terms depend on your circumstances.