September Base Rate - Afin Bank Comment

17 September 2026

Following today's Base Rate announcement from the Bank of England, Charles Resnick, Chief Finance Officer, Afin Bank, commented:

“We remain in wait-and-see mode, so today’s decision to hold the Base Rate at 3.75% was completely expected and it is likely to remain unchanged for the rest of the year. The MPC will continue to assess the impact of higher energy prices, wage growth, higher prices and inflation.

“The markets are looking to October’s Budget, the first from new Chancellor John Healey, for signs of the Government’s ongoing monetary policy and to prove its fiscal credibility, given the limited room for manoeuvre.

“There is significant pressure on the Government with borrowing costs increasing due to elevated Gilt yields, while oil and gas prices remain high as the war in Iran drags on. Other underlying metrics remain challenging, with inflation expected to rise above 3% this year and higher still into 2027.

“Fixed-term deposit rates remain above Bank Rate, offering attractive returns for savers, while elevated funding costs and fiscal uncertainty should continue to support disciplined lender pricing for mortgage borrowers.”

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