Bank Rate
Definition · Level 8 · Rates, FX & macro
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The Bank of England’s policy rate, set by the Monetary Policy Committee at eight meetings a year, aiming at 2% inflation. It was 3.75% after the September 2026 meeting.
Example
“The Monetary Policy Committee held Bank Rate at 3.75%.”
Rules and market figures change: check the current ones before relying on this (written as of 2026-09).
Where Tradecraft teaches it
Level 8 · Rates, FX & macro, in the lesson “The UK: Bank Rate, SONIA and gilts”: The Bank of England’s rate, the overnight benchmark SONIA, gilts and the Long Gilt future.
Related terms
- GiltA UK government bond, issued by the Debt Management Office.
- Long Gilt futureICE Futures Europe’s 10-year-area gilt future: £100,000 nominal of a notional 4% gilt, deliverable gilts of roughly 9 to 13 years, tick 0.01 = £10…
- MPCMonetary Policy Committee: the nine members of the Bank of England who vote on Bank Rate at eight meetings a year.
- SONIASterling Overnight Index Average: the average rate on unsecured overnight sterling deposits, published by the Bank of England at 9:00 the next…
- 2s10sThe 10-year Treasury yield minus the 2-year yield, in bp: the headline gauge of curve slope.
- Annualized rateA short-period rate compounded to a year: (1 + monthly rate)^12 − 1, or (1 + quarterly rate)^4 − 1.