Bank of England holds Bank Rate at 3.75% (MPC 6-3) on 16 Sep 2026, marking divergence with Fed hike
On 16 September 2026 the Bank of England’s Monetary Policy Committee voted 6–3 to maintain Bank Rate at 3.75%, citing higher and volatile energy prices and a risk of second‑round effects; three members voted to raise rates to 4%. The decision widens policy divergence after a recent Fed hike.
The desk brief
On 16 September 2026 the Bank of England’s Monetary Policy Committee voted 6–3 to maintain Bank Rate at 3.75%, citing higher and volatile energy prices and a risk of second‑round effects; three members voted to raise rates to 4%. The decision widens policy divergence after a recent Fed hike.
The BoE’s hold at 3.75% while the Fed tightened implies a cross‑jurisdictional policy gap that can raise the relative cost of sterling funding and currency hedges. Sterling‑exposed African issuers or investors (for example in South Africa) with GBP liabilities may face higher hedging costs versus USD borrowers, but actual pricing and flows will depend on market positioning, local rates and FX moves.
BoE next policy decision and meeting on 5 November 2026 (and UK Autumn Budget at end‑October).
Sources & verification
Developing storyFurther independent confirmation is required.
- Bank rate maintained at 3.75% - September 2026 Monetary Policy Summary and Minutesbankofengland.co.uk (opens in a new tab)
- Bank of England defies Fed’s rate-hike lead, leaving rates unchangedcnbc.comSource published (opens in a new tab)
Public references supporting this brief.