Interest rates live: Inflation rises ahead of Bank of England’s first rates vote of 2026
Will the Bank of England cut interest rates today?
- The Bank of England is set to hold its first interest rate vote of 2026 on Thursday, with a decision to maintain rates widely anticipated.
- This follows December's rate cut to 3.75 per cent, which was the fourth reduction in 2025 as the Monetary Policy Committee (MPC) adopted a cautious approach.
- The MPC is balancing persistent inflation, sluggish economic growth, high wages, and increasing unemployment.
- An unexpected rise in inflation to 3.4 per cent last month makes further rate cuts unlikely without new data confirming a downward trend.
- Higher interest rates typically lead to increased mortgage repayments for those not on fixed deals, but also offer better savings rates for consumers.
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