UK interest rates

What is the UK base rate?

The UK base rate (Bank Rate) is set by the Bank of England’s Monetary Policy Committee (MPC). It influences the rates high-street banks and building societies charge on mortgages and pay on savings, so changes in Bank Rate tend to flow through to households and businesses over time.

What makes interest rates go up or down?

The MPC’s job is to keep inflation low and stable at 2% over the medium term. It meets regularly to judge whether to raise, hold, or cut Bank Rate based on the outlook for inflation and growth.

• Inflation vs the 2% target: If inflation is projected to stay above target, the MPC may raise rates to cool demand; if it’s below target or the economy is weak, it may cut.
• Economic outlook (18–24 months ahead): Monetary policy works with a lag, so decisions are based on where inflation and activity are likely to be over the next one to two years.
• Labour market and wages: Tight labour markets and faster wage growth can add inflation pressure, pointing to higher rates; cooling wages point the other way.
• Energy, food and import costs: Shocks to global energy or commodity prices, and movements in the pound, can push prices up or down and influence policy.
• Financial conditions and expectations: Bank Rate and expectations of its future path affect gilt yields, swap rates and, in turn, fixed‑rate mortgages.
• Other tools: The Bank can also buy or sell gilts (QE/QT) to influence longer‑term rates and demand when needed.

Where to check the current UK base rate

For the official, up‑to‑date Bank Rate, check the Bank of England’s “Interest rates and Bank Rate” page. It also shows the date of the next decision. You can also read the plain‑English explainer “What are interest rates?” on the Bank’s site.

• Bank of England: Interest rates and Bank Rate
• Bank of England: What are interest rates? (explainer)

When do rate reviews happen?

The MPC sets policy eight times a year (roughly every six weeks). The Bank publishes confirmed announcement dates in advance and releases a short policy summary and minutes on each decision day. A detailed Monetary Policy Report is published quarterly (typically in February, May, August and November).

Ontopp tip

Add MPC decision dates and your mortgage end dates into Ontopp. Set reminders a few weeks before each decision so you can review lender rates and plan ahead—especially if you’re considering a tracker or your fixed deal is nearing its end.

Disclaimer

This article is for general information only and is not financial advice. Policies and dates can change—always check the Bank of England’s website for the latest information.