- The Bank of England held Bank Rate on 17 September 2026, with Governor Andrew Bailey saying the MPC did not discuss raising interest rates four times.
- Bailey tied a rate cut to an end of the Middle East conflict and energy prices returning to levels seen before the conflict began.
- The BoE announced a quantitative tightening path to its end point: a large part of gilt holdings will not be sold, while the remainder will be sold between now and 2034.
- Bailey said UK monetary conditions tightened this year as expected cuts did not materialize, with mortgage rates up nearly 1% since the conflict began in late February.
Quotes
“The simple answer to that question would be an end of conflict in the Middle East. To be honest with you, and with energy prices coming really back to where they were before this conflict began.”
“we did not discuss the prospect of raising interest rates four times.”