United Kingdom Interest Rate  1971-2018 | Data | Chart | Calendar

The Bank of England left its key Bank Rate on hold at 0.5 percent on June 21st 2018, in line with market expectations. However, 3 out of 9 policymakers including BoE Chief Economist, voted for a rate hike compared with only 2 votes in the previous meeting. The Committee voted unanimously to maintain the stock of UK government bond purchases, financed by the issuance of central bank reserves, at GBP 435 billion. But, the MPC now intends not to reduce the stock of purchased assets until the rate reaches around 1.5%, compared to the previous guidance of around 2%. Interest Rate in the United Kingdom averaged 7.59 percent from 1971 until 2018, reaching an all time high of 17 percent in November of 1979 and a record low of 0.25 percent in August of 2016.

United Kingdom Interest Rate
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BoE Keeps Rates Steady


The Bank of England left its key Bank Rate on hold at 0.5 percent on June 21st 2018, in line with market expectations. However, 3 out of 9 policymakers, including BoE Chief Economist, voted for a rate hike compared with only 2 votes in the previous meeting.

Excerpts from the BoE Monetary Policy Summary:

The Committee voted unanimously to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £10 billion.  The Committee also voted unanimously to maintain the stock of UK government bond purchases, financed by the issuance of central bank reserves, at £435 billion.

In the MPC’s most recent projections, set out in the May Inflation Report, GDP was expected to grow by around 1¾% per year on average over the forecast, conditioned on the gently rising path of Bank Rate implied by market yields at the time.  In those projections, growth continued to rotate towards net trade and business investment and away from consumption.  While modest by historical standards, the projected pace of GDP growth over the forecast was nevertheless slightly faster than the diminished rate of supply growth, which averaged around 1½% per year.  As a result, a small margin of excess demand was projected to emerge by early 2020, feeding through into higher rates of pay growth and domestic cost pressures.  Nevertheless, CPI inflation continued to fall back gradually as the effects of sterling’s past depreciation faded, reaching the 2% target in two years.

CPI inflation was 2.4% in May, unchanged from April.  Inflation is expected to pick up by slightly more than projected in May in the near term, reflecting higher dollar oil prices and a weaker sterling exchange rate.  Most indicators of pay growth have picked up over the past year and the labour market remains tight, suggesting that domestic cost pressures will continue to firm gradually, as expected.

The Committee’s best collective judgement remains that, were the economy to develop broadly in line with the May Inflation Report projections, an ongoing tightening of monetary policy over the forecast period would be appropriate to return inflation sustainably to its target at a conventional horizon.  For the majority of members, an increase in Bank Rate was not required at this meeting.  All members agree that any future increases in Bank Rate are likely to be at a gradual pace and to a limited extent.

In addition to its discussion of the immediate policy decision, the Committee reviewed its previous guidance on the level of Bank Rate at which the MPC will consider whether to start to reduce the stock of purchased assets.  The MPC continues to expect to maintain the stock of purchased assets until Bank Rate reaches a level from which it can be cut materially, reflecting the Committee’s preference to use Bank Rate as the primary instrument for monetary policy.  Since the previous guidance, the Committee has reduced Bank Rate from 0.5% to 0.25% in August 2016 and has noted that it could lower it further if required.  Reflecting this, the MPC now intends not to reduce the stock of purchased assets until Bank Rate reaches around 1.5%, compared to the previous guidance of around 2%.  Any reduction in the stock of purchased assets will be conducted at a gradual and predictable pace.  Decisions on Bank Rate will take into account any impact of changes in the stock of purchased assets on overall monetary conditions, in order to achieve the inflation target.  In the event that potential movements in Bank Rate are judged insufficient to achieve the inflation target, the reduction in the stock of assets could be amended or reversed.


BoE | Joana Taborda | joana.taborda@tradingeconomics.com
6/21/2018 12:45:04 PM



Calendar GMT Actual Previous Consensus TEForecast
2018-05-10 11:00 AM BoE Interest Rate Decision 0.5% 0.5% 0.5% 0.5%
2018-06-21 11:00 AM BoE Quantitative Easing £435B £435B £435B £435B
2018-06-21 11:00 AM BoE Interest Rate Decision 0.5% 0.5% 0.5% 0.5%
2018-08-02 11:00 AM BoE Quantitative Easing £435B
2018-08-02 11:00 AM BoE Interest Rate Decision 0.5% 0.75%
2018-09-13 11:00 AM BoE Interest Rate Decision 0.75%


United Kingdom Money Last Previous Highest Lowest Unit
Interest Rate 0.50 0.50 17.00 0.25 percent [+]
Interbank Rate 0.73 0.73 15.63 0.28 percent [+]
Money Supply M0 81741.00 81453.00 82561.00 3529.00 GBP Million [+]
Money Supply M1 1730542.00 1706536.00 1730542.00 82315.00 GBP Million [+]
Money Supply M2 2372675.00 2350158.00 2372675.00 167436.00 GBP Million [+]
Money Supply M3 2827671.00 2791911.00 2833498.00 263025.00 GBP Million [+]
Central Bank Balance Sheet 590042.00 589906.00 591284.00 76991.00 GBP Million [+]
Banks Balance Sheet 3760938.00 3779706.00 4060273.00 3342179.00 GBP Million [+]
Foreign Exchange Reserves 162730.15 164685.93 164685.93 35190.42 USD Million [+]
Loans to Private Sector 2371585.00 2380345.00 2813033.00 8755.00 GBP Million [+]
Deposit Interest Rate 0.25 0.25 4.25 0.00 percent [+]
Lending Rate 0.75 0.75 4.75 0.50 percent [+]
Private Debt to GDP 217.16 222.67 246.93 159.53 percent [+]


United Kingdom Interest Rate

In the United Kingdom, benchmark interest rate is set by the Monetary Policy Committee (MPC). The Bank of England official interest rate is the repo rate. This repo rate applies to open market operations of the Bank of England with a group of counterparties (banks, building societies, securities firms). This page provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. United Kingdom Interest Rate - actual data, historical chart and calendar of releases - was last updated on July of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
0.50 0.50 17.00 0.25 1971 - 2018 percent Daily




interest rate by Country
Country Last
Turkey 17.75 Jun/18
Mexico 7.75 Jun/18
Russia 7.25 Jun/18
Brazil 6.50 Jun/18
India 6.25 Jun/18
Indonesia 5.25 Jun/18
China 4.35 Jun/18
United States 2.00 Jun/18
Australia 1.50 Jul/18
Canada 1.50 Jul/18
South Korea 1.50 Jul/18
United Kingdom 0.50 Jul/18
Euro Area 0.00 Jun/18
France 0.00 Jun/18
Germany 0.00 Jun/18
Italy 0.00 Jun/18
Netherlands 0.00 Jun/18
Spain 0.00 Jun/18
Japan -0.10 Jun/18
Switzerland -0.75 Jun/18


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