# Interest rates held at 3.75% but Bank warns Iran war could mean future hike

By Chris Cheverall — 2026-09-17

Further interest rate hikes cannot be ruled out after the Bank of England held at 3.75 per cent on Thursday, experts have warned.

This was the sixth consecutive time that the Bank’s monetary policy committee (MPC) has not changed borrowing costs.

But three of the nine-person committee voted in favour of increasing to four per cent, while 3.1 per cent inflation and the war with Iran continues to make a huge impact.

Chris Cheverall, head of UK at CMC Markets, said: “The decision to hold rates at 3.75 per cent should not be mistaken for an all-clear on inflation. The 6–3 vote shows there remains a meaningful divide within the MPC, with pressure for tighter policy still firmly on the table.

“The backdrop of elevated energy prices and the subsequent feed-through into other areas of the economy, mean further rate hikes cannot be ruled out. Inflationary pressures cannot simply be written off as transitory, particularly while the energy outlook remains so uncertain.”

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