Regulatory Alerts2026-02-05
Bank Rate Maintained at 3.75% - February 2026 Monetary Policy Summary and Minutes
The Bank of England’s Monetary Policy Committee maintained the Bank Rate at 3.75% with a 5–4 vote, citing continued easing in pay growth and services inflation. CPI inflation is projected to return to the 2% target by April, driven largely by lower energy prices and Budget 2025 measures, while building labour market slack supports subdued economic growth. The Committee anticipates further rate reductions will be necessary to sustainably meet the inflation target, though the timing and extent of future easing will depend on evolving risks from inflation persistence versus weaker demand.
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