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Bank of England Holds Rates at 3.75% as US Fed Hikes to 4%

10/6/2026

The Bank of England kept its benchmark rate at 3.75% on Wednesday, a decision that stands in sharp contrast to the Federal Reserve's move just a day earlier to raise US rates to a range of 3.75% to 4%.

The divergence between the two central banks hinges on their differing assessments of where current inflation is coming from and how it might evolve.

The Bank of England's Monetary Policy Committee voted six to three to hold the rate steady, with three members advocating for an immediate increase.

This decision followed the Federal Reserve's September 16 move, which marked the first US rate hike since 2023.