FX.co ★ Bank of England MPC Cuts Key Rate to 4% in First Move Since December 2025

The Bank of England’s Monetary Policy Committee (MPC) has lowered its key policy rate to 4% in February 2026, marking a one-percentage-point reduction from the previous level of 5% that had been in place since December 2025.

This February move represents the first change in the benchmark rate since that December decision, signalling a notable shift in the MPC’s policy stance. The adjustment suggests that policymakers now see conditions as warranting a less restrictive monetary setting than at the end of 2025.

The new 4% rate was confirmed with data last updated on 5 February 2026 and will be closely watched by markets and businesses for its impact on borrowing costs, investment decisions and broader economic sentiment in the United Kingdom.