Bank of England Rate Decision (June 2026)

What it means

The Bank of England's Monetary Policy Committee voted 7-2 to keep Bank Rate unchanged at 3.75%. Two members dissented in favour of a 25 basis-point hike to 4%, up from just one dissenter at the April meeting. UK CPI inflation stands at 2.8%, still above the 2% target, and the Bank flagged volatile global energy markets tied to Middle East tensions as a source of ongoing uncertainty.

What it moves

Sterling is expected to firm modestly as the more hawkish vote signals that rate cuts are off the table for now. Short-dated UK gilt yields may tick higher as markets reprice the probability of a future hike. Global equity markets will monitor whether other major central banks are also staying restrictive longer than anticipated.

Affected markets

• GBP/USD ↑ — More hawkish vote signals rate cuts are not imminent, supporting sterling
• UK Gilts (2Y) ↓ — Yields rise as 2 MPC members favour a hike, reducing rate-cut expectations
• FTSE 100 → — Rate hold limits immediate equity relief; hawkish shift adds mild headwind to valuations
• EUR/GBP ↓ — GBP strengthens against euro on relatively tighter UK policy stance