Interest rates have been held at 3.75% for all of 2026 so far as the Iran war has caused an economic shock for the UK.

Before the war broke out, the Bank of England’s Monetary Policy Committee (MPC), which meets every six weeks to set interest rates, had been poised to cut rates this year.

However, as it became increasingly clear the Iran war would lead to increased inflation, the MPC kept interest rates on ice.

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

The MPC’s latest interest rates decision will be announced on 5 November, with some economists expecting the committee to raise interest rates to help stave off inflation. Meanwhile, others believe the committee will keep rates at 3.75%.

What do you think the MPC should do? Tell us in the poll below.

• When is the next Bank of England base rate meeting?
• Will the Bank of England raise UK interest rates in 2026?
• UK inflation forecast: where are prices heading next?

For the latest news, analysis, and commentary, sign up to MoneyWeek’s free newsletters.