20.96 percentage points. Bank Rate is 3.75% and the Bank of England series for the rate lenders advertise on credit cards stood at 24.71% in August 2026. The gap has not been that wide since February 2022. The chart on this page tracks it every month back to January 2016.
Imagine you’re paying off a couple of credit cards, and you read a headline that announces interest rates are coming down. Only, your statement looks the same as it did two years ago. We breakdown the Bank of England numbers that show why.
Six rate cuts. Your card rate stayed put.
Bank Rate today
3.75%
Average card rate
24.71%
The gap between them
20.96 pts
Since August 2024 the Bank has cut its rate six times, taking it down 1.50 points. Over the same 25 months the average credit card rate went up by 0.14 points. The gap has not been this wide since February 2022. A card rate is variable, so it moves when the lender decides rather than when the Bank does.
Why your statement has not moved
Bank Rate is the rate the Bank of England pays banks on the money they hold with it, and a lot of borrowing takes its cue from that.
A credit card works differently. The rate is variable, the lender sets it, and nothing requires it to move when Bank Rate moves. A card rate can go up while Bank Rate sits still, and it can sit still while Bank Rate comes down.
In the last two years, there have been six cuts off Bank Rate, and the average advertised card rate ended 0.14 points higher than it started.
Use our calculator below to calculate what you owe on each card and the rate it charges. Your APR is on your statement and in your banking app. The figures start as an example, so change them to yours.
Work out what your cards cost
Put in what you owe on each card and the rate it charges. Your APR is on your statement and in your banking app. The figures below start as an example, so change them to yours.
You owe
£0
Interest a year
£0
Interest a month
£0
What it would be if your rates had followed Bank Rate down
£0
The difference over a year
£0
A year of interest on balances that stay where they are, with no payments and no fees, so the real figure moves as you pay things off. It is not a quote and it is not advice. The comparison takes 1.50 points off each of your rates, which is how far Bank Rate has fallen since August 2024. That comparison is ours, not the Bank of England’s. Card rates are not tied to Bank Rate, so there was no rule saying they had to follow it down, and there is none saying what they do next. The figure shows the size of the gap, not money you were owed.
What changed, and when
Bank Rate went to 0.1% in the pandemic. It climbed to 5.25% by August 2023, held there for a year, then started coming down in August 2024.
The card rate line drifted up while Bank Rate rose, and it carried on drifting up while Bank Rate fell. In the graph below, the shaded band between the two lines represents this gap. The gap between Bank Rate and average card rate is wider now than at any point since February 2022.
Hover or touch any month to read both rates and the gap on that date.
Average card rate
Bank Rate
The gap
Monthly, January 2016 to August 2026. Touch or hover the chart to read any month.
Show every month as a table
| Month | Bank Rate | Card rate | Gap, points |
|---|---|---|---|
| Aug 2026 | 3.75% | 24.71% | 20.96 |
| Jul 2026 | 3.75% | 24.71% | 20.96 |
| Jun 2026 | 3.75% | 24.71% | 20.96 |
| May 2026 | 3.75% | 24.69% | 20.94 |
| Apr 2026 | 3.75% | 24.69% | 20.94 |
| Mar 2026 | 3.75% | 24.67% | 20.92 |
| Feb 2026 | 3.75% | 24.65% | 20.90 |
| Jan 2026 | 3.75% | 24.66% | 20.91 |
| Dec 2025 | 3.90% | 24.65% | 20.75 |
| Nov 2025 | 4.00% | 24.66% | 20.66 |
| Oct 2025 | 4.00% | 24.65% | 20.65 |
| Sep 2025 | 4.00% | 24.65% | 20.65 |
| Aug 2025 | 4.05% | 24.65% | 20.60 |
| Jul 2025 | 4.25% | 24.65% | 20.40 |
| Jun 2025 | 4.25% | 24.67% | 20.42 |
| May 2025 | 4.30% | 24.65% | 20.35 |
| Apr 2025 | 4.50% | 24.65% | 20.15 |
| Mar 2025 | 4.50% | 24.65% | 20.15 |
| Feb 2025 | 4.54% | 24.65% | 20.11 |
| Jan 2025 | 4.75% | 24.65% | 19.90 |
| Dec 2024 | 4.75% | 24.65% | 19.90 |
| Nov 2024 | 4.80% | 24.65% | 19.85 |
| Oct 2024 | 5.00% | 24.58% | 19.58 |
| Sep 2024 | 5.00% | 24.58% | 19.58 |
| Aug 2024 | 5.00% | 24.58% | 19.58 |
| Jul 2024 | 5.25% | 24.57% | 19.32 |
| Jun 2024 | 5.25% | 24.57% | 19.32 |
| May 2024 | 5.25% | 24.57% | 19.32 |
| Apr 2024 | 5.25% | 24.58% | 19.33 |
| Mar 2024 | 5.25% | 24.34% | 19.09 |
| Feb 2024 | 5.25% | 24.03% | 18.78 |
| Jan 2024 | 5.25% | 24.02% | 18.77 |
| Dec 2023 | 5.25% | 24.02% | 18.77 |
| Nov 2023 | 5.25% | 23.90% | 18.65 |
| Oct 2023 | 5.25% | 23.80% | 18.55 |
| Sep 2023 | 5.25% | 23.80% | 18.55 |
| Aug 2023 | 5.23% | 23.57% | 18.34 |
| Jul 2023 | 5.00% | 23.38% | 18.38 |
| Jun 2023 | 4.66% | 23.10% | 18.44 |
| May 2023 | 4.42% | 22.76% | 18.34 |
| Apr 2023 | 4.25% | 22.76% | 18.51 |
| Mar 2023 | 4.08% | 22.48% | 18.40 |
| Feb 2023 | 3.98% | 22.45% | 18.47 |
| Jan 2023 | 3.50% | 22.42% | 18.92 |
| Dec 2022 | 3.25% | 22.48% | 19.23 |
| Nov 2022 | 2.93% | 21.96% | 19.03 |
| Oct 2022 | 2.25% | 21.83% | 19.58 |
| Sep 2022 | 1.92% | 21.89% | 19.97 |
| Aug 2022 | 1.68% | 21.80% | 20.12 |
| Jul 2022 | 1.25% | 21.66% | 20.41 |
| Jun 2022 | 1.14% | 21.43% | 20.29 |
| May 2022 | 0.98% | 21.38% | 20.40 |
| Apr 2022 | 0.75% | 21.41% | 20.66 |
| Mar 2022 | 0.62% | 21.42% | 20.80 |
| Feb 2022 | 0.47% | 21.44% | 20.96 |
| Jan 2022 | 0.25% | 21.43% | 21.18 |
| Dec 2021 | 0.17% | 21.42% | 21.25 |
| Nov 2021 | 0.10% | 21.42% | 21.32 |
| Oct 2021 | 0.10% | 21.48% | 21.38 |
| Sep 2021 | 0.10% | 21.45% | 21.35 |
| Aug 2021 | 0.10% | 21.45% | 21.35 |
| Jul 2021 | 0.10% | 21.49% | 21.39 |
| Jun 2021 | 0.10% | 21.49% | 21.39 |
| May 2021 | 0.10% | 21.49% | 21.39 |
| Apr 2021 | 0.10% | 21.30% | 21.20 |
| Mar 2021 | 0.10% | 21.15% | 21.05 |
| Feb 2021 | 0.10% | 21.02% | 20.92 |
| Jan 2021 | 0.10% | 20.99% | 20.89 |
| Dec 2020 | 0.10% | 20.90% | 20.80 |
| Nov 2020 | 0.10% | 20.92% | 20.82 |
| Oct 2020 | 0.10% | 20.91% | 20.81 |
| Sep 2020 | 0.10% | 20.72% | 20.62 |
| Aug 2020 | 0.10% | 20.56% | 20.46 |
| Jul 2020 | 0.10% | 20.56% | 20.46 |
| Jun 2020 | 0.10% | 20.54% | 20.44 |
| May 2020 | 0.10% | 20.58% | 20.48 |
| Apr 2020 | 0.10% | 20.63% | 20.53 |
| Mar 2020 | 0.35% | 20.78% | 20.43 |
| Feb 2020 | 0.75% | 20.77% | 20.02 |
| Jan 2020 | 0.75% | 20.77% | 20.02 |
| Dec 2019 | 0.75% | 20.77% | 20.02 |
| Nov 2019 | 0.75% | 20.33% | 19.58 |
| Oct 2019 | 0.75% | 19.62% | 18.87 |
| Sep 2019 | 0.75% | 20.01% | 19.26 |
| Aug 2019 | 0.75% | 20.01% | 19.26 |
| Jul 2019 | 0.75% | 20.01% | 19.26 |
| Jun 2019 | 0.75% | 19.99% | 19.24 |
| May 2019 | 0.75% | 20.00% | 19.25 |
| Apr 2019 | 0.75% | 19.92% | 19.17 |
| Mar 2019 | 0.75% | 19.83% | 19.08 |
| Feb 2019 | 0.75% | 19.73% | 18.98 |
| Jan 2019 | 0.75% | 18.67% | 17.92 |
| Dec 2018 | 0.75% | 18.66% | 17.91 |
| Nov 2018 | 0.75% | 18.69% | 17.94 |
| Oct 2018 | 0.75% | 18.38% | 17.63 |
| Sep 2018 | 0.75% | 18.46% | 17.71 |
| Aug 2018 | 0.74% | 18.47% | 17.73 |
| Jul 2018 | 0.50% | 18.35% | 17.85 |
| Jun 2018 | 0.50% | 18.26% | 17.76 |
| May 2018 | 0.50% | 18.24% | 17.74 |
| Apr 2018 | 0.50% | 18.26% | 17.76 |
| Mar 2018 | 0.50% | 17.92% | 17.42 |
| Feb 2018 | 0.50% | 17.92% | 17.42 |
| Jan 2018 | 0.50% | 17.92% | 17.42 |
| Dec 2017 | 0.50% | 17.95% | 17.45 |
| Nov 2017 | 0.49% | 17.96% | 17.47 |
| Oct 2017 | 0.25% | 17.95% | 17.70 |
| Sep 2017 | 0.25% | 17.97% | 17.72 |
| Aug 2017 | 0.25% | 17.96% | 17.71 |
| Jul 2017 | 0.25% | 17.96% | 17.71 |
| Jun 2017 | 0.25% | 17.96% | 17.71 |
| May 2017 | 0.25% | 17.89% | 17.64 |
| Apr 2017 | 0.25% | 17.97% | 17.72 |
| Mar 2017 | 0.25% | 17.96% | 17.71 |
| Feb 2017 | 0.25% | 17.96% | 17.71 |
| Jan 2017 | 0.25% | 17.96% | 17.71 |
| Dec 2016 | 0.25% | 17.96% | 17.71 |
| Nov 2016 | 0.25% | 17.96% | 17.71 |
| Oct 2016 | 0.25% | 17.95% | 17.70 |
| Sep 2016 | 0.25% | 17.94% | 17.69 |
| Aug 2016 | 0.28% | 17.93% | 17.65 |
| Jul 2016 | 0.50% | 17.96% | 17.46 |
| Jun 2016 | 0.50% | 17.94% | 17.44 |
| May 2016 | 0.50% | 17.93% | 17.43 |
| Apr 2016 | 0.50% | 17.96% | 17.46 |
| Mar 2016 | 0.50% | 17.94% | 17.44 |
| Feb 2016 | 0.50% | 17.94% | 17.44 |
| Jan 2016 | 0.50% | 17.96% | 17.46 |
Every decision, and what cards did next
Each time the Bank moved its rate, here is the average card rate in the month before and three months after. Cuts are shaded. Not one cut since August 2024 was followed by a fall in card rates.
| Bank decision | Bank Rate | Bank move | Card rate before | 3 months later | Card move |
|---|---|---|---|---|---|
| 18 Dec 2025 | 3.75% | ▼ -0.25 | 24.66% | 24.67% | ▲ +0.01 |
| 7 Aug 2025 | 4.00% | ▼ -0.25 | 24.65% | 24.66% | ▲ +0.01 |
| 8 May 2025 | 4.25% | ▼ -0.25 | 24.65% | 24.65% | 0.00 |
| 6 Feb 2025 | 4.50% | ▼ -0.25 | 24.65% | 24.65% | 0.00 |
| 7 Nov 2024 | 4.75% | ▼ -0.25 | 24.58% | 24.65% | ▲ +0.07 |
| 1 Aug 2024 | 5.00% | ▼ -0.25 | 24.57% | 24.65% | ▲ +0.08 |
| 3 Aug 2023 | 5.25% | ▲ +0.25 | 23.38% | 23.90% | ▲ +0.52 |
| 22 Jun 2023 | 5.00% | ▲ +0.50 | 22.76% | 23.80% | ▲ +1.04 |
| 11 May 2023 | 4.50% | ▲ +0.25 | 22.76% | 23.57% | ▲ +0.81 |
| 23 Mar 2023 | 4.25% | ▲ +0.25 | 22.45% | 23.10% | ▲ +0.65 |
| 2 Feb 2023 | 4.00% | ▲ +0.50 | 22.42% | 22.76% | ▲ +0.34 |
| 15 Dec 2022 | 3.50% | ▲ +0.50 | 21.96% | 22.48% | ▲ +0.52 |
| 3 Nov 2022 | 3.00% | ▲ +0.75 | 21.83% | 22.45% | ▲ +0.62 |
| 22 Sep 2022 | 2.25% | ▲ +0.50 | 21.80% | 22.48% | ▲ +0.68 |
| 4 Aug 2022 | 1.75% | ▲ +0.50 | 21.66% | 21.96% | ▲ +0.30 |
| 16 Jun 2022 | 1.25% | ▲ +0.25 | 21.38% | 21.89% | ▲ +0.51 |
| 5 May 2022 | 1.00% | ▲ +0.25 | 21.41% | 21.80% | ▲ +0.39 |
| 17 Mar 2022 | 0.75% | ▲ +0.25 | 21.44% | 21.43% | ▼ -0.01 |
| 3 Feb 2022 | 0.50% | ▲ +0.25 | 21.43% | 21.38% | ▼ -0.05 |
| 16 Dec 2021 | 0.25% | ▲ +0.15 | 21.42% | 21.42% | 0.00 |
The numbers will change
The Monetary Policy Committee meets eight times a year, and the Bank of England publishes the card rate series about a month behind the rest of its data. So the gap is a moving number rather than a one off finding, and the figures on this page are refreshed after every announcement.
The next decision lands on 17 September 2026.
Borrowing across the UK
Bank of England Money and Credit, July 2026 figures, published 1 September 2026.
£0.9bn
Put on credit cards in the month, after repayments
12.5%
Growth in card borrowing over the year
21.45%
Rate actually charged on balances that carry interest
£257.5bn
Owed across all UK consumer credit
What the borrowing figures add
Card borrowing is still growing. £0.9bn went on to UK credit cards in July, after everything people paid back that month, and card lending is 12.5% up on the year.
The 21.45% in that row is worth a second look. It is lower than the 24.71% advertised rate because zero percent and promotional balances are counted in it. Those deals end. When one does, the balance behind it starts earning interest at the rate on the card, and for most people that is the higher number rather than the lower one.
Want to talk it through with someone
Free and independent help with money worries is available from MoneyHelper, set up by government, and from the charity StepChange.
Where these numbers come from
The Bank of England publishes two card rates. The average card rate on this page is the rate lenders advertise, series IUMCCTL, which comes out about a month ahead of everything else. The 21.45% figure above is the rate people are charged on balances that carry interest, which is lower because zero percent and promotional balances are counted in it. Your own rate could sit either side of both.
- Bank of England, official Bank Rate history, series IUMABEDR. Read 11 September 2026. bankofengland.co.uk
- Bank of England, interest and exchange rates database, series IUMCCTL, monthly representative credit card rate for households, not seasonally adjusted. Latest month August 2026. Read 11 September 2026.
- Bank of England, Money and Credit, July 2026, published 1 September 2026. bankofengland.co.uk
- Bank of England, interest and exchange rates database, series LPMBI2O, consumer credit outstanding excluding student loans, July 2026, £257,529 million.
- Bank of England, Monetary Policy Committee dates for 2026. Next announcement 17 September 2026.
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Frequently asked questions
What is the gap between Bank Rate and credit card rates right now?
How many times has the Bank of England cut Bank Rate, and by how much?
Six times since August 2024, on 1 August 2024, 7 November 2024, 6 February 2025, 8 May 2025, 7 August 2025 and 18 December 2025. Each cut was 0.25 points, taking Bank Rate from 5.25% to 3.75%. Over the same 25 months the average advertised card rate moved from 24.57% to 24.71%.
Which of my credit cards costs me the most, and how do I work it out?
Multiply each balance by that card's APR. A £2,000 balance at 24.9% costs about £498 a year in interest, and a £900 balance at 29.9% costs about £269, so the bigger balance costs more even though it carries the lower rate. The calculator on this page runs that sum for every card you enter and shows the yearly figure beside each one. Your APR is on your statement and in your banking app.
Why is the average card rate lower than the rate on my own card?
The Bank of England publishes two card rates. The representative rate, 24.71% in August 2026, is what lenders advertise. The effective rate, 21.45% in July 2026, is what borrowers are charged on balances that carry interest, and it comes out lower because zero percent and promotional balances are counted in it. Neither is a rate anyone is offered. Your own rate depends on the card and on what the lender makes of your credit file, and it can sit either side of both.
What is the difference worth on a balance over a year?
Take £3,000 that stays where it is for a year. At 24.71% it costs about £741 in interest. Had rates followed Bank Rate down by the same 1.50 points, the same balance would work out at about £696, a difference of roughly £45. Card rates are variable and are not tied to Bank Rate, so that difference is the size of the gap rather than money anyone was owed. Balances fall as you pay them down, so treat these as the running cost at today's rates.
When is the next Bank of England interest rate decision?
17 September 2026. The Monetary Policy Committee publishes its decision, the summary and the minutes on the same day. This page is updated after each announcement, so the figures above move with it.