BoE Holds Rate at 3.75% as Inflation Remains Above 2% Target

The Bank of England maintained its main interest rate at 3.75% on February 5, 2026, as inflation remains above the 2% target and economic growth is picking up. Since December, the BOE has cut rates every three months, with further reductions likely this year as data suggests stronger demand and stickier prices. Inflation stood at 3.4% in January, down from a peak but still above target. Economists emphasize upcoming data will determine the timing of future rate cuts, balancing growth stimulation with inflation control. The government seeks a sharp easing in inflation to support borrowing and spending.