Bank of England base rate history 2020 to 2026: a complete timeline

What is the current Bank of England base rate?

The Bank of England base rate (also called Bank Rate) is currently 3.75%. It was set at this level in December 2025 and has been held steady at every Monetary Policy Committee (MPC) meeting since: February 2026, March 2026, and April 2026. The next MPC decision is on 18 June 2026.

The most recent vote (April 2026) was 8 to 1 in favour of holding, with one member voting to raise the rate to 4.0%. The full decision and reasoning is published in the Bank of England's April 2026 monetary policy summary.

Bank Rate timeline 2020 to 2026

The full sequence of MPC decisions over the past six years:

Source: Bank of England Monetary Policy Committee decisions. The full historical data series back to 1694 is available at the Bank of England's interest rate page.

The pandemic low: 0.1% (March 2020 to December 2021)

On 19 March 2020, in response to the COVID-19 pandemic, the MPC cut Bank Rate to 0.1%, the lowest in the Bank's 326-year history. It stayed at this level for over 18 months, the longest sustained period at sub-1% rates the UK has ever seen.

This unprecedented low directly fuelled a property market boom. Cheap mortgages, a stamp duty holiday, and lifestyle changes from the pandemic combined to push UK house prices up by over 20% between mid-2020 and late 2021.

The aggressive rise: 0.1% to 5.25% (December 2021 to August 2023)

Inflation surged through 2021 and 2022, peaking at 11.1% in October 2022, the highest in 40 years. The MPC raised Bank Rate at 14 consecutive meetings between December 2021 and August 2023, taking it from 0.1% to 5.25%.

This was the steepest tightening cycle in the Bank's modern history. Mortgage rates rose sharply, particularly hitting fixed-rate deals taken out at the 2020 to 2021 lows. Many homeowners coming off two-year fixes faced monthly payment increases of £400 to £900.

The cutting cycle: 5.25% to 3.75% (August 2024 to December 2025)

With inflation falling back toward the Bank's 2% target, the MPC began cutting Bank Rate from August 2024. The pace was deliberately slow: six cuts of 0.25% each over 16 months, taking the rate from 5.25% down to 3.75% by December 2025.

Mortgage rates have fallen alongside, but not as fast as borrowers hoped. Two-year fixed rates remain around 4.5 to 5.5% for most borrowers in early 2026, well above the sub-2% deals widely available in 2020 to 2021.

Why has Bank Rate been held at 3.75% in 2026?

The MPC has cited continued uncertainty in two areas. First, services inflation remains stickier than goods inflation. Second, global energy prices remain volatile. The April 2026 minutes specifically noted that "the conflict in the Middle East means that prospects for global energy prices are highly uncertain."

One member has voted to raise rates at each of the last three meetings, citing concerns about persistent inflation. The majority view remains that the current level is appropriate while inflation completes its return to the 2% target.

What does the rate path mean for property sellers?

For sellers in 2026, the implications are mixed.

Mortgage rates are stable but not low. This caps how much buyers can afford to bid, which in turn limits how aggressively prices can rise. Yorkshire and the Humber saw 3.9% house price growth in the year to February 2026 (the highest of any English region), but this is steady appreciation, not a boom.

Buyer affordability is the real constraint. A buyer's borrowing power is roughly 4 to 4.5 times their income, but mortgage stress tests at 3.75% Bank Rate plus a typical lender margin mean lenders are testing affordability at higher effective rates.

Cash buyers (who don't rely on mortgages) have a structural advantage in this market. They aren't affected by rate decisions in the same way. For sellers who need certainty and speed, this is one reason cash sales remain a viable route. For more on what this means in practice, see our guide on whether UK interest rates will fall in 2026.

Common questions

What is the current Bank of England base rate?

3.75% as of April 2026. It was cut to this level in December 2025 and held steady at the February, March, and April 2026 MPC meetings. The next decision is 18 June 2026.

What was the lowest Bank of England base rate ever?

0.1%, set on 19 March 2020 in response to the COVID-19 pandemic. It remained at this level until 16 December 2021. This is the lowest in the Bank of England's 326-year history.

What was the highest Bank of England base rate in recent years?

5.25%, set on 3 August 2023. It remained at this level until the cutting cycle began on 1 August 2024.

When does the Bank of England next decide on interest rates?

The next MPC decision is on 18 June 2026. The MPC meets eight times per year. Each decision is published with full minutes on the Bank of England website.

Does the Bank of England base rate affect house prices?

Yes, indirectly. The base rate affects mortgage rates, which affect how much buyers can borrow, which affects what they can afford to bid. Lower rates generally support higher prices; higher rates compress them. But the relationship has lags of 6 to 18 months and is affected by other factors including supply, employment, and confidence.