The Bank of England’s Monetary Policy Committee voted 6–3 to keep Bank Rate unchanged at 3.75% at its September 16, 2026 meeting, in line with market expectations. Three members preferred a 25-basis-point increase to 4%. The MPC said prolonged conflict in the Middle East has pushed crude and refined energy prices higher and increased volatility, contributing to a rise in UK CPI inflation to 3.1% in August, with further increases expected in coming quarters. The Committee stressed that policy must ensure inflation returns sustainably to the 2% target while assessing the scale and duration of the energy shock. So far, there is limited evidence of significant second-round effects on wages and prices, although the risk could increase if energy costs remain elevated. The MPC also unanimously agreed to reduce its stock of government bond purchases to zero through a multi-year programme, unwinding holdings at an average annual pace of GBP 46 billion through 2034.