# Bank of England holds interest rates at 3.75% but hints at future hikes

By Katie Horne — 2026-04-30

Katie Horne, banks relationship manager at Flagstone, said: “Savers are currently awash with options to make inflation-beating returns on their cash.

“A vote to keep the base rate at 3.75 per cent means competition among banks for savers’ cash will remain high.

“Banks will have to continue to fight for every pound in savers’ pockets in this higher-than-planned interest rate environment.

“Traditionally by this point in the ISA cycle, banks remove products from offer and savers enjoy the last of their introductory bonus rates.

“This year, record numbers of Cash ISA rates are still on the market as banks cater to high demand from savers for ISA deals before the Cash ISA threshold falls to £12,000 next April.

“Savers would be wise to act now, however.

“If inflation continues to rise, the margin between the inflation rate and top savings rates will tighten, making it harder to guarantee that inflation-busting return.

“Locking cash you won’t need for two or more years into some of the market’s best longer-term fixed-term deals could reduce that risk as you ride out this tumultuous market.”

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