Notes · Topic
Bank of England
9 editorial notes from Briefed on Bank of England. Thinking from the editorial team, written for UK founders, operators, and investors.
May 2026
Are UK interest rates going down?
The Bank of England has been cutting rates since August 2024. The base rate now sits at 4.25 percent, down from a peak of 5.25 percent. Further cuts are expected, but the pace depends on how quickly services inflation falls and whether wage growth stays above target.
May 2026
Are mortgage rates going down in the UK?
Mortgage rates are falling, but the pace is slower than the Bank of England base rate cuts suggest. The average two-year fixed deal has dropped from above 6 percent to the low 4s. How much further they fall, and when, depends on swap markets and services inflation.
May 2026
What is the Bank of England base rate?
The Bank of England base rate is currently 4.25 percent, set by the Monetary Policy Committee. It is the rate at which the Bank lends to commercial banks overnight, and it flows through to savings rates, mortgage rates, and the cost of business borrowing across the economy.
May 2026
Bank of England MPC meeting dates 2026
The Monetary Policy Committee meets eight times a year to set the base rate. Here are the scheduled meeting dates for 2026, with decisions announced at noon on the Thursday of each meeting week.
May 2026
What is quantitative easing?
Quantitative easing is a form of monetary policy in which a central bank creates new money to buy financial assets, typically government bonds, to lower borrowing costs and stimulate economic activity when conventional interest rate cuts are no longer sufficient.
May 2026
UK inflation forecast: what the predictions say for 2026 and beyond
UK CPI inflation has fallen from its 11.1 percent peak and is approaching the Bank of England's 2 percent target. The consensus forecast for 2026 is inflation settling in the 2 to 3 percent range, though services inflation and wage growth remain the main upside risks.
May 2026
What is monetary policy?
Monetary policy is the use of interest rates, money supply, and other financial tools by a central bank to manage inflation and economic conditions. In the UK, it is set by the Bank of England's Monetary Policy Committee, which meets eight times a year.
May 2026
What is the UK national debt, and who owns it?
UK national debt stands at around £2.7 trillion, approximately 98 percent of GDP. Around a quarter is held by the Bank of England through its quantitative easing programme. The rest is owned by pension funds, overseas investors, insurance companies, and individual savers through gilts.
May 2026
What are UK gilts?
UK gilts are government bonds issued by the Treasury to finance public borrowing. They pay a fixed rate of interest and return the principal at maturity. Gilt yields are one of the most important indicators in UK financial markets, influencing mortgage rates, pension valuations, and government borrowing costs.