UK Investing News: June 2026

Rates, inflation and a strong run for UK shares dominated the past fortnight. The Bank of England held its base rate, the May inflation figures landed the day before, and the FTSE 100 had one of its best weeks of the year. Here is what happened and why it matters if you hold an ISA, a SIPP or a workplace pension.

Bank of England holds the base rate at 3.75%

On 18 June the Monetary Policy Committee held Bank Rate at 3.75%, in line with a Reuters poll in which all 65 economists surveyed expected no change. The committee is weighing softer headline inflation against stickier services prices and energy risk tied to events in the Middle East, so the path from here is genuinely uncertain rather than a clear glide down. For savers a hold keeps cash rates supported a little longer; for investors it is a reminder that timing rate moves is hard, and that drip-feeding money into a diversified fund beats waiting for the “right” rate. Background and forecasts are at the HomeOwners Alliance.

May inflation holds at 2.8% but services prices jump

The ONS published May Consumer Prices Index data on 17 June, the day before the rate decision. Headline CPI was 2.8%, unchanged from April and below the 3.0% the market expected, while food inflation eased to 2.2%. The catch is services inflation, the Bank’s most closely watched measure, which rose to 3.7% from 3.2%, with transport up sharply on motor fuel. The takeaway for long-term investors is not to react to a single print: above-target inflation is exactly why holding too much in cash erodes spending power over time. The full bulletin is on the Office for National Statistics site.

FTSE 100 rallies as energy and bank shares lead

UK shares had a strong week to 12 June, with the FTSE 100 climbing around 1.6% to close near 10,470, led by energy, banks and industrials as oil prices eased and risk appetite improved. The index has spent 2026 trading above the 10,000 mark it first crossed early in the year. Strong weeks are pleasant but not a buy signal: the lesson from a record-setting run is to keep contributing on a schedule rather than chasing momentum. If you are still choosing how to get broad UK and global exposure, our guide to how to start investing in the UK covers low-cost index options. Market recap via Kalkine.

FCA targeted support is now live for pensions and investments

The FCA’s new targeted support regime went live on 6 April 2026, letting pension providers and investment firms make limited, situation-based suggestions to groups of customers who share common characteristics, without it counting as full regulated advice. The regulator estimates at least 18 million people could be offered extra help with pension and investment decisions over the next decade, after finding that three-quarters of older defined-contribution savers had no clear plan for taking their money. It is genuinely useful for people who would never pay for advice, but a nudge from your provider is not personalised advice, so treat it as a starting point rather than a recommendation tailored to you. The FCA’s summary is at Millions of people set to get extra help. If you are weighing how to hold a pension yourself, our guide on how to open a SIPP in the UK explains the trade-offs.