Bank of England maintains interest rates at 3.75 percent following narrow split vote

The Bank of England Monetary Policy Committee (MPC) voted 5-4 on February 5, 2026, to maintain the Bank Rate at 3.75 percent, signalling a potential reduction if a forecast sharp fall in inflation proves sustained. This decision, overseen by Governor Andrew Bailey andrew bailey, was significantly narrower than market polling had suggested, as many analysts had anticipated a larger majority in favour of the hold. The unexpectedly close vote has immediately altered the outlook for UK GB monetary policy and shifted market pricing for future interest-rate adjustments.

In its accompanying report, the Bank of England materially revised down the near-term timing of inflation, while lowering growth forecasts and raising unemployment projections for the United Kingdom GB. These revised forecasts, which involve the input of committee members such as Huw Pill huw pill, Clare Lombardelli clare lombardelli, and Sarah Breeden sarah breeden, provide the conditional guidance that future easing depends on the sustainability of falling price pressures. The decision and these projections directly influence interest-rate expectations and the timing of potential policy easing.