The Bank of England has announced that it will maintain its Bank Rate at 3.75% in its latest policy decision on Thursday, September 17, 2026. The decision was voted on by the Bank’s policymakers, with a majority of 6-3 in favor of no change. The three members who voted for an increase proposed a 0.25 percentage point hike.
This decision comes after the US Federal Reserve’s recent move to raise interest rates, citing a stronger and more robust US economy. The US economy has shown signs of resilient spending, strong productivity and investment, while demand in the UK remains weaker.
Susannah Streeter, Chief Investment Strategist at Wealth Club, commented on the Bank of England’s decision, stating that “Inflation is the fever central bankers want to bring down, but the Bank of England is holding off administering the bitter medicine of an interest rate hike.” She added that the UK economy is currently fragile, with sluggish growth and a cooling job market, which may offset the risks of increasing energy costs leading to higher consumer prices.
However, Streeter also warned that the ongoing tensions with Iran and the resulting high crude and gas prices could lead to a possible hike later this year or next, especially if consumer price inflation continues to rise. She pointed out that three members of the policymakers’ table had already voted for an immediate hike to 4%, and more members may join in if the energy crunch persists. As a result, there is a possibility of a hike on November 5th if inflation continues to intensify.
Streeter also highlighted the differences between the US and UK economies, stating that “The US is a more robust patient, with the spending might of AI hyperscalers pulsing through the veins of the economy, supporting strong job creation, which is why the Fed moved to douse down inflation by hiking rates yesterday.”
For borrowers and savers, Streeter advised caution, stating that borrowers should not assume that the hold on rates means mortgage rates will remain the same. She explained that fixed mortgage rates are influenced by swap rates, which reflect expectations of future interest rates, rather than just the current Bank Rate. With the markets still predicting further rate hikes, swap rates have increased, leading to some lenders raising fixed mortgage rates. She also cautioned that savers may have more time to benefit from higher rates on cash, but the rates offered will vary as banks adjust their pricing in response to market changes.
Wealth Club, founded in 2016 by former Hargreaves Lansdown director Alex Davies, is the UK’s leading non-advised investment service for high-net-worth and sophisticated investors. The company offers access to a wide range of tax-efficient, alternative, and private market investments. In addition, the company has recently launched the UK’s first dedicated Private Markets SIPP, allowing eligible investors to hold semi-liquid private market funds within a tax-efficient pension wrapper.
Wealth Club is also the UK’s largest broker of Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) funds. The company boasts over 70,000 members and 14,200 clients, who have invested over £1.8 billion through the platform. With its headquarters in Bristol, Wealth Club employs 43 people and provides wealthier and sophisticated investors with access to tax-efficient, alternative, and private market investments, along with expert research and analysis. The company has been profitable since 2017 and has not received any external funding.
