LONDON — The Bank of England held the bank rate steady at 3.75% on Thursday, 30 July 2026. Three members of the institution's nine-member monetary policy committee voted to raise interest rates, citing expectations of rising inflation later in the year.

The policymakers who supported a rate increase were Catherine Mann, Huw Pill, and Megan Greene. Their votes came as the central bank projected that UK economic growth would slow to a halt in the current quarter. Inflation is expected to rise to 3.2% later in 2026, a level that would remain above the bank's 2% target until early 2028.

"There was little evidence of inflationary pressures from oil prices feeding through to other goods and services," Bank of England Governor Andrew Bailey said. This assessment contrasted with the committee members who favored a tighter monetary stance given the projected price increases.

The decision to hold rates follows a period of reductions throughout the previous year. The Bank of England had cut interest rates four times in 2025 before holding the rate at 3.75% since December 2025. The current rate of 3.75% represents a rise of 2.85 percentage points from the 0.9% level recorded in April 2026.

Market reactions indicated a shift in expectations for future policy moves. The market-implied probability of no change in interest rates in September rose from 53.6% to 73% following the announcement. The central bank also adjusted its growth outlook, projecting UK economic growth of 1.1% in 2026, which is higher than the 0.9% forecast issued in April 2026.