Bank of England Holds Base Rate at 3.75% and Ends Bond Sales

The Bank of England has left its base rate unchanged at 3.75%, GB News reports, while confirming a shift in how it manages government bond holdings. The decision, announced on Friday, 18 September 2026, means the rate stays where it has been after being held once again, according to Money Saving Expert.

Alongside the rate decision, the central bank halted its sales of government bonds. The Telegraph reports that borrowing costs fell sharply following that move. The Financial Times described the change as the endgame of the Bank's quantitative tightening programme.

The Bank also signalled that it could raise interest rates if energy prices remain elevated, the BBC reports. That guidance points to concern that sustained high energy costs could keep inflation pressures in place, even as the rate is held for now.

The decision matters for households and businesses with loans and mortgages tied to the base rate, since a hold means no immediate change in repayments for those borrowers. Money Saving Expert noted that its coverage would explain what the hold means for consumers and when the rate might next move.

bank of england

The halt in bond sales marks a separate policy step from the rate decision itself. By stopping the sale of government bonds, the Bank changes how it is unwinding the stock of assets built up in earlier years, a process the Financial Times framed as reaching its final stage.

What to watch next: whether energy prices ease, and whether the Bank follows through on its signal of a possible rate rise.