Bank rate held Feb26

Middle_of_the_Road

At its meeting ending on 4 February 2026, the Monetary Policy Committee voted by a majority of 5–4 to maintain Bank Rate at 3.75%. Four members voted to reduce Bank Rate by 0.25 percentage points, to 3.5%.

cricidmuslibale

I’m very grateful that 5 members (including the governor, Andrew Bailey) voted to hold the Base Rate at 3.75%! Although I had expected a 6-3 or even a 7-2 vote in favour of holding it this month so I am very surprised by the narrow majority in favour of maintaining it at 3.75% tbh. Clearly the recent uptick in inflation is seen as a very short term one by the MPC. Unfortunately for savvy savers like us (and fortunately for borrowers) it is now very likely that a majority of the MPC will vote in favour of a 0.25% Base Rate cut on March 19!

InvesterJones

Quite a big drop in the inflation forecast, which is probably why more members voted to cut than expected - some are saying waiting until March is too long, but Bailey does seem to want to be strong on making sure inflation drops to target - not unfairly given the stick he's taken for failing to do so in the past.

Savers still win out - falling inflation is a better thing for them than for those hoping debts could be inflated away.