GeraCash / UK Interest Rates
UK Interest Rate Today — the Bank of England Bank Rate
The Bank Rate (also called the base rate) is the UK's official interest rate, set by the Bank of England's Monetary Policy Committee. It is the benchmark that guides what lenders charge on mortgages and what banks pay on savings. It is currently 3.75%, in force since 18 December 2025.
What is the current UK interest rate (Bank of England Bank Rate)?
The UK Bank Rate — the Bank of England's official interest rate, set by the Monetary Policy Committee — is 3.75%, in force since 18 December 2025. That is a cut from the previous 4% (a -0.25 pp change). The Bank Rate is the benchmark that guides what banks charge on mortgages and pay on savings (series IUDBEDR).
Current UK Bank Rate
Bank Rate now
3.75%
Since 18 December 2025
Previous rate
4%
Until 18 December 2025
Latest move
-0.25 pp
Rate cut
Mortgage / savings impact calculator
Enter a balance and an interest rate (it defaults to the current 3.75% Bank Rate) to see the monthly and annual interest — earned on savings, or paid on a mortgage balance.
Pounds sterling
£10,000.00 at 3.75% earns about
£31.25
per month in interest earned
Per year
£375.00
interest earned over 12 months
Per month
£31.25
interest earned, average month
Simple interest before tax — actual savings interest depends on your provider, account type and whether it compounds. Not financial advice. The Bank Rate guides — but does not set — the rates lenders and savings providers offer.
Recent Bank Rate changes
| Effective date | Bank Rate | Change |
|---|---|---|
| 18 December 2025 | 3.75% | -0.25 pp |
| 7 August 2025 | 4% | -0.25 pp |
| 8 May 2025 | 4.25% | -0.25 pp |
| 6 February 2025 | 4.5% | -0.25 pp |
| 7 November 2024 | 4.75% | -0.25 pp |
| 1 August 2024 | 5% | -0.25 pp |
| 3 August 2023 | 5.25% | +0.25 pp |
| 22 June 2023 | 5% | +0.50 pp |
| 11 May 2023 | 4.5% | +0.25 pp |
| 23 March 2023 | 4.25% | +0.25 pp |
| 2 February 2023 | 4% | +0.50 pp |
| 15 December 2022 | 3.5% | +0.50 pp |
| 3 November 2022 | 3% | +0.75 pp |
| 22 September 2022 | 2.25% | +0.50 pp |
Change = rate − previous rate, in percentage points (pp). Over the full published series the Bank Rate peaked at 17% (15 November 1979) and reached a record low of 0.1% (19 March 2020). Full history back to 1975-01-02.
How the Bank Rate affects mortgages and savings
Mortgages
Tracker mortgages move directly with the Bank Rate, so a change feeds through almost immediately. Standard variable rate (SVR) mortgages usually follow, but lenders set them at their discretion. Fixed-rate mortgages are locked for the deal term and only change when you remortgage. As a rule of thumb, each 0.25 pp move is about £41.67 a month per £200,000.00 of balance in interest.
Savings
When the Bank Rate rises, savings providers tend to offer more — and when it is cut they tend to offer less — but they are not obliged to pass changes on in full, and easy-access rates often move slower than fixed bonds. At 3.75%, £10,000.00 earning the Bank Rate would yield about £31.25 a month (£375.00 a year) in simple interest before tax.
The Bank Rate is a benchmark, not the rate you actually pay or receive — your real rate depends on your provider, product and circumstances. This page is information, not financial advice.
Frequently asked questions
- What is the current UK interest rate?
- The Bank of England Bank Rate is 3.75%, effective from 18 December 2025. This is the official "base rate" set by the Monetary Policy Committee (MPC) and is the benchmark for interest rates across the UK economy. Source: Bank of England (series IUDBEDR).
- What is the Bank of England Bank Rate (base rate)?
- The Bank Rate, often called the base rate, is the single most important interest rate in the UK. It is the rate the Bank of England pays to commercial banks holding money with it, and it influences the rates those banks charge borrowers and pay savers. The MPC reviews it roughly eight times a year. It is currently 3.75%.
- How does the Bank Rate affect my mortgage?
- If you are on a tracker or standard variable rate (SVR) mortgage, your payments move broadly with the Bank Rate — when it rises your monthly interest goes up, and when it is cut your interest falls. Fixed-rate mortgages are unaffected until your deal ends, at which point you remortgage at the rates then available. On a £200,000.00 balance, each 0.25 percentage-point change is roughly £41.67 a month in interest.
- How does the Bank Rate affect my savings?
- Higher Bank Rate generally means banks and building societies pay more interest on savings, while a cut tends to reduce savings rates — though providers do not have to pass on changes in full. At 3.75%, £10,000.00 in an easy-access account paying the Bank Rate would earn about £31.25 a month (£375.00 a year) in simple interest before tax. Use the calculator above for your own balance.
- Why does the Bank of England change interest rates?
- The MPC's job is to keep inflation at the 2% target. When inflation is too high it tends to raise the Bank Rate to cool spending and borrowing; when the economy is weak or inflation is below target it tends to cut the rate to encourage spending. Rate decisions therefore reflect the MPC's read of inflation and growth at each meeting.
- What is the highest the UK Bank Rate has ever been?
- In this published series the Bank Rate peaked at 17% on 15 November 1979 and reached its record low of 0.1% on 19 March 2020. The full change history from 1975-01-02 is shown in the table above. It is currently 3.75%.
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Data source
Contains public sector information published by Bank of England and licensed under the Bank of England data. Source: Bank of England (18 December 2025).
Contains Bank of England data. Source: Bank of England. Series: IUDBEDR — Official Bank Rate (set by the Monetary Policy Committee). Retrieved 2026-06-25. Calculations performed by Gera from the published Bank of England Bank Rate — no figures are estimated.
Related tools
- UK inflation calculator — the inflation the Bank Rate is set to control
- UK mortgage affordability calculator — how much you could borrow at today's rates
- UK take-home pay calculator — what you keep after tax & National Insurance