Bank of England holds Bank Rate at 3.75% but three of nine MPC members vote to raise it to 4%

The Bank of England's Monetary Policy Committee voted 6–3 on 17 September to hold Bank Rate at 3.75%, with Megan Greene, Catherine Mann and Huw Pill voting for a rise to 4%. The Bank now expects CPI inflation to reach slightly above 4% in early 2027 as higher oil and gas prices feed through, and the Governor warned that the longer energy volatility lasts, the more likely a rate rise becomes. For buyers, the hold brings no relief: the Bank itself notes two-year fixed mortgage rates are around 95 basis points higher than before the Middle East conflict, and lenders price off expected future rates rather than today's. For sellers, the message is that affordability pressure is unlikely to ease this autumn, although the Bank also found that energy costs have so far had only a limited effect on UK wage and price setting.