Why UK Interest Rates Are Expected to Stay at 3.75%

The Bank of England is expected to keep interest rates, the cost of borrowing, at 3.75% on 17 September, even as inflation, meaning rising prices, hit 3.1% in August, above its 2% goal. It warned in July that a worst-case Middle East escalation could lift inflation to 4.5% by mid-2027. Markets saw only a one-in-five chance of a rise.