Bank of England expected to hold rates at 3.75% — here’s what it means for you

The Bank of England (BoE) is widely expected to keep interest rates at 3.75% when the Monetary Policy Committee (MPC) meets this Thursday, 5 February. Most economists say a rate hold is a “near‑certainty”, mainly because inflation has ticked up again and is still above the Bank’s 2% target.

Inflation rose to 3.4% in December, which makes the MPC less likely to cut rates right now. Experts say the Bank wants to see clearer signs that inflation is falling again before making any big changes.

Why are rates likely to stay on hold?

Economists point to a few key reasons:

• Inflation is still too high. At 3.4%, it remains above the 2% target. This is one of the biggest reasons for holding rates where they are.
• Mixed economic signals. The UK has seen small signs of growth, like a 0.3% rise in GDP in November, but inflation has rebounded, keeping the MPC cautious.
• Recent rate cuts mean the Bank wants to pause. Rates were cut from 4% to 3.75% in December, so many economists think it’s too soon for another move.

Overall, experts say the MPC is likely to wait for more data before cutting again.

What does this mean for you if you have a mortgage?

A rate hold isn’t great news for people hoping for cheaper mortgages.

• Most mortgage rates won’t fall yet. Economists warn that while a cut later this year is still likely, it’s very unlikely to happen this week.
• Tracker mortgages stay put. These only fall when the BoE cuts rates.
• Fixed rates may slowly improve. Fixed‑rate deals don’t change immediately, but lenders often price them based on future expectations.

If you are on a fixed rate mortgage deal and you aren't due to renew this year, the fluctuations in interest rates won't have an impact on you yet. Your rate will remain the same until your deal runs out.

What does this mean for savers?

Savings rates are likely to stay roughly the same for now.

• A rate hold means no immediate boost for savers.
• If the Bank starts cutting later in the year, some savings rates might come down.
• For now, savers still benefit from the higher‑rate environment created over the past few years.

The key thing is that banks don’t always pass savings improvements on quickly so even with a hold, individual savings rates may vary.

When is the MPC meeting again?

The BoE will announce its next decisions on:

• Thursday 5 February 2026 (this week’s meeting)
• Thursday 19 March 2026
• Thursday 30 April 2026 (expected to be another key meeting)

These future dates come from the Bank’s official interest rate calendar.

Will interest rates come down later this year?

Most experts think interest rates will come down later this year, but slowly. Economists still expect at least one or two rate cuts in 2026, but not yet. Some suggest April could be the first possible cut. However, these are all just educated guesses at this point.

The bottom line

The Bank of England is almost certain to hold interest rates at 3.75% this Thursday, as inflation is still too high for comfort. This means mortgage rates and savings rates won’t shift much yet, but cuts later in the year are still on the table, just not guaranteed.