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Despite today's decision from policymakers, the Bank of England is widely expected to raise interest rates multiple times over the next year
The Bank of England has confirmed the base rate will remain at its current level despite growing inflationary concerns and pending hikes to energy prices.
Earlier today, the central bank's Monetary Policy Committee (MPC) voted to keep the cost of borrowing at 3.75 per cent; having been at this level since December 2025.
The base rate sets how much individuals and businesses can borrow, dictates savings interest rates and mortgage deals, and influences the direction of inflation.
Following the Covid-19 pandemic, the Bank was forced to raise the base rate to as high as 5.25 per cent to control the consumer price index (CPI) rate.
Across the pond, the US Federal Reserve opted to raise its own base rate for the first time in three years to a range of 3.75 per cent to four per cent.
Analysts are already pricing in around four hikes to interest rates over the next 12 months, which return borrowing costs to five per cent.
