The Bank of England is keeping its main interest rate unchanged at 3.75% with U.K. inflation remaining above target and economic growth is showing signs of picking up
ByPAN PYLAS Associated Press
February 5, 2026, 2: 41 AM
LONDON — The Bank of England kept its main interest rate unchanged at 3.75% on Thursday with U.K. inflation remaining above target and economic growth is showing signs of picking up.
The decision was widely anticipated in financial markets but the split on the nine-member rate-setting panel was much closer than expected. Five members of the Monetary Policy Committee opted to keep rates unchanged while four voted for a quarter-point cut.
The central bank, which sets interest rates for the whole of the U.K., has been steadily reducing interest rates over the past 18 months, more often than not every three months. It last cut its key rate in December and indicated that further reductions are likely this year.
Economic forecasts accompanying the decision reinforced the view that further rate cuts are in the offing, as the bank is predicting that inflation will fall back to its 2% target in the coming months from 3.4% currently.
That’s around a year earlier than previously thought. It said a series of measures to reduce the cost of living, particularly with rega