Bank Rate held at 3.75% on 17 September 2026: what it means for variable card rates

On 17 September 2026 the Bank of England's Monetary Policy Committee kept Bank Rate at 3.75%. The vote was 6–3: six members voted to hold, and three (Megan Greene, Catherine L Mann and Huw Pill) voted for a quarter-point rise to 4%. Bank Rate has been 3.75% since the cut on 18 December 2025 and has been held at every decision since. The next decision is on 5 November 2026, with the November Monetary Policy Report.

Why the Bank held, and why three members wanted a rise

The minutes put energy prices at the centre. The conflict in the Middle East had pushed crude oil and gas prices well above their level at the time of the July report, and CPI inflation rose to 3.1% in August. The Bank expected inflation to reach around 3¾% in the last quarter of 2026 and slightly above 4% in early 2027. The majority saw little evidence yet of "second-round effects" in wages and prices. The three dissenters worried that the inflation peak would arrive just as next year's pay settlements are agreed. The Bank's own summary on the day was that the longer energy prices stay volatile, the more likely it is to need to raise Bank Rate. September's inflation figure has since come in at 3.5%.

What it means for a variable card rate

Capital on Tap does not publish a representative APR. It advertises rates as low as 13.86% APR (variable), and its FAQ says the monthly variable rate is "our fixed business rate plus a variable portion that tracks the Bank of England Bank Rate". It also says "your rate can only change at the start of a new billing period". A hold means no change from this decision. If Bank Rate rises on 5 November, the Bank Rate part of the rate would move with it from the start of your next billing period, while the business-rate part stays where it is unless Capital on Tap changes it under the agreement. Other issuers set their variable rates in their own ways, so read your own agreement.

The practical point

A quarter of a percentage point is small next to the rate itself. On £5,000 carried for a full year it is about £12.50 of extra interest. The far bigger saving is not carrying a balance at all. Capital on Tap charges no interest on card purchases shown on a statement if the closing balance is paid in full by the due date. Cash withdrawals are the exception: interest runs from the day you take the cash.

Our guide to avoiding business credit card interest covers the repayment settings, Smart Repay and the cash-withdrawal trap. If you do carry a balance and want to see what it costs, the interest cost calculator works it through. We will add a short update here after the 5 November decision.