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UK Interest Rate Timeline 1997-2026: Rates & Mortgages

As of 16 September 2026, Bank Rate is 3.75%. The Bank of England Monetary Policy Committee held it unchanged in July 2026 by a 6-3 vote. Bank Rate influences U…

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INDEPENDENCE

Operational Independence & the First MPC Decision

On 6 May 1997 the Chancellor announced operational independence for the Bank of England. The first Monetary Policy Committee meeting followed on 5-6 June 1997, raising B…

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PRE-CRISIS PEAK

Bank Rate Peaks at 7.5%

Bank Rate reached 7.5% in June 1998, the highest point in this entire 1997-2026 series — well above even the 2023 tightening-cycle peak.

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FINANCIAL CRISIS

Six Cuts in Five Months: 5.75% to 0.5%

Following the collapse of Lehman Brothers, the MPC cut Bank Rate six times between October 2008 and March 2009, including a record 1.5-point single cut in November 2008.…

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LOW-RATE ERA

0.5% for 89 Months — the Longest Hold

Bank Rate held at 0.5% continuously from March 2009 to August 2016, the longest unbroken hold in this series, before the post-Brexit-referendum cut to 0.25%.

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COVID EMERGENCY

Two Cuts in Eight Days — the All-Time Low

As Covid-19 hit, the MPC cut Bank Rate twice in eight days: to 0.25% on 11 March 2020, then to an all-time-low 0.1% on 19 March 2020.

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MINI-BUDGET SHOCK

Fixed Mortgages Spike Before Bank Rate Does

After the September 2022 mini-budget, UK government bonds sold off sharply. The average 2-year fixed mortgage rate hit 6.65% by 20 October 2022 — while Bank Rate itself…

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THE GREAT RESET

14 Rate Rises in 20 Months: 0.1% to 5.25%

The MPC raised Bank Rate at nearly every meeting from December 2021 to August 2023, reaching 5.25% — the highest since February 2008 — to fight inflation driven by pande…

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EASING CYCLE

Six Cuts, But No Return to 2020 Pricing

Bank Rate fell in six 0.25-point steps from 5.25% to 3.75% between August 2024 and December 2025 — but average fixed mortgage rates stayed well above their 2021 lows, be…

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LIVE

Held at 3.75% — Next Decision 17 September

The MPC held Bank Rate at 3.75% on 29 July 2026 by a 6-3 vote; three members wanted 4.00%, citing volatile energy prices linked to Middle East developments. The next dec…

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