Base Rate Decision Coming Next Week: What Savers Should Know (5 February)

The Bank of England will announce its next base rate decision on Thursday 5 February. According to a recent Reuters poll, most economists expect no change, with Bank Rate likely to remain at 3.75% — though expectations for cuts later this year have softened.

The nine-member Monetary Policy Committee (MPC) has been closely split in recent meetings, most notably in December when it voted 5–4 in favour of a 25-basis-point cut. However, stronger-than-expected economic data since then has reduced the urgency for further easing, at least for now.

What the Markets Are Expecting

In a Reuters survey of 56 economists, all but two expect the Bank of England to hold rates steady at its February meeting. Only a slim majority now anticipate a cut in March, down from nearly three-quarters of respondents just a month ago.

Recent data showing stronger private-sector growth, firmer retail sales, and inflation moving further away from the Bank’s 2% target has given policymakers reason to pause. While inflation is still expected to ease later in the year, the current backdrop suggests the MPC is likely to adopt a wait-and-see approach.

What This Means for Savers

For savers, a hold decision would likely mean little immediate movement in easy-access and fixed savings rates. Many of the best savings accounts already price in expectations that rate cuts will be gradual rather than aggressive.

If the Bank does hold next week, providers may be less inclined to compete aggressively on rates in the short term. That said, banks and building societies remain well-funded, and competition for deposits — particularly fixed-rate savings — is still relatively strong.

On DepositScout, the top easy-access accounts are currently offering rates well above inflation expectations for later this year, meaning savers still have opportunities to lock in attractive returns if they act before sentiment shifts further.

Looking Ahead to 2026

While a February hold looks likely, the longer-term path for rates remains uncertain. Around 55% of economists expect at least one cut by the end of March, but nearly half now believe rates could remain unchanged through the entire first quarter.

Most forecasts still point to Bank Rate settling somewhere between 3.25% and 3.00% later in 2026, but with inflation proving sticky and the economy showing resilience, the Bank appears in no rush to move.

For savers, that reinforces a familiar message: don’t rely on future cuts to improve savings rates. The best opportunities tend to appear before the Bank clearly signals a turning point — not after.