The Bank of England's Monetary Policy Committee voted unanimously to hold the Bank Rate at 0.75 percent during its June policy meeting and reaffirmed its pledge to gradual and limited rate rises over the forecast period, despite ongoing Brexit concerns and global trade tensions. The central bank lowered its outlook for the economy to zero in the second quarter of the year from its previous estimate of 0.2 percent growth. Interest Rate in the United Kingdom averaged 7.51 percent from 1971 until 2019, reaching an all time high of 17 percent in November of 1979 and a record low of 0.25 percent in August of 2016.

Interest Rate in the United Kingdom is expected to be 0.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in the United Kingdom to stand at 0.75 in 12 months time. In the long-term, the United Kingdom Interest Rate is projected to trend around 1.50 percent in 2020, according to our econometric models.

United Kingdom Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2019-06-20 11:00 AM BoE MPC Vote Unchanged 9/9 9/9 9/9 9/9
2019-06-20 11:00 AM BoE MPC Vote Hike 0/9 0/9 0/9 0/9
2019-06-20 11:00 AM BoE MPC Vote Cut 0/9 0/9 0/9 0/9
2019-06-20 11:00 AM BoE Quantitative Easing £435B £435B £435B £435B
2019-07-23 08:30 AM BoE FPC Minutes
2019-07-23 12:15 PM BoE Haldane Speech
2019-08-01 11:00 AM BoE Quantitative Easing £435B £435B £435B



BoE Holds Rates, Cuts Q2 Growth Forecast

The Bank of England's Monetary Policy Committee voted unanimously to hold the Bank Rate at 0.75 percent during its June policy meeting and reaffirmed its pledge to gradual and limited rate rises over the forecast period, despite ongoing Brexit concerns and global trade tensions. The central bank lowered its outlook for the economy to zero on the second quarter of the year from its previous estimate of 0.2 percent growth.

BoE Monetary Policy Summary:

Since the Committee’s previous meeting, the near-term data have been broadly in line with the May Report, but downside risks to growth have increased.  Globally, trade tensions have intensified. Domestically, the perceived likelihood of a no-deal Brexit has risen. Trade concerns have contributed to volatility in global equity prices and corporate bond spreads, as well as falls in industrial metals prices. Forward interest rates in major economies have fallen materially further.  Increased Brexit uncertainties have put additional downward pressure on UK forward interest rates and led to a decline in the sterling exchange rate.

As expected, recent UK data have been volatile, in large part due to Brexit-related effects on financial markets and businesses. After growing by 0.5% in 2019 Q1, GDP is now expected to be flat in Q2. That in part reflects an unwind of the positive contribution to GDP in the first quarter from companies in the United Kingdom and the European Union building stocks significantly ahead of recent Brexit deadlines. Looking through recent volatility, underlying growth in the United Kingdom appears to have weakened slightly in the first half of the year relative to 2018 to a rate a little below its potential. The underlying pattern of relatively strong household consumption growth but weak business investment has persisted.

CPI inflation was 2.0% in May. It is likely to fall below the 2% target later this year, reflecting recent falls in energy prices. Core CPI inflation was 1.7% in May, and core services CPI inflation has remained slightly below levels consistent with meeting the inflation target in the medium term. The labour market remains tight, with recent data on employment, unemployment and regular pay in line with expectations at the time of the May Report. Growth in unit wage costs has remained at target-consistent levels.

The Committee continues to judge that, were the economy to develop broadly in line with its May Inflation Report projections that included an assumption of a smooth Brexit, an ongoing tightening of monetary policy over the forecast period, at a gradual pace and to a limited extent, would be appropriate to return inflation sustainably to the 2% target at a conventional horizon. The MPC judges at this meeting that the existing stance of monetary policy is appropriate.

The economic outlook will continue to depend significantly on the nature and timing of EU withdrawal, in particular: the new trading arrangements between the European Union and the United Kingdom; whether the transition to them is abrupt or smooth; and how households, businesses and financial markets respond. The appropriate path of monetary policy will depend on the balance of these effects on demand, supply and the exchange rate. The monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction. The Committee will always act to achieve the 2% inflation target.


Bank of England | Stefanie Moya | stefanie.moya@tradingeconomics.com
6/20/2019 11:19:06 AM



United Kingdom Money Last Previous Highest Lowest Unit
Interest Rate 0.75 0.75 17.00 0.25 percent [+]
Money Supply M0 82702.00 82640.00 82702.00 3529.00 GBP Million [+]
Money Supply M1 1769552.00 1767821.00 1779418.00 82323.00 GBP Million [+]
Interbank Rate 0.77 0.77 15.63 0.28 percent [+]
Money Supply M2 2433285.00 2421438.00 2433285.00 167427.00 GBP Million [+]
Money Supply M3 2878826.00 2871072.00 2907677.00 262975.00 GBP Million [+]
Foreign Exchange Reserves 168206.36 165203.57 180845.18 35190.42 USD Million [+]
Central Bank Balance Sheet 593867.00 593615.00 597303.00 76991.00 GBP Million [+]
Banks Balance Sheet 3852919.00 3858644.00 4060273.00 3342179.00 GBP Million [+]
Loans to Private Sector 2480613.00 2456986.00 2812981.00 8755.00 GBP Million [+]
Deposit Interest Rate 0.50 0.50 4.25 0.00 percent [+]
Lending Rate 1.00 1.00 4.75 0.50 percent [+]
Private Debt to GDP 224.00 225.30 247.70 157.30 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 2019.

Actual Previous Highest Lowest Dates Unit Frequency
0.75 0.75 17.00 0.25 1971 - 2019 percent Daily




Country Last Previous
Argentina 58.72 Jul/19
Turkey 24.00 Jun/19
Mexico 8.25 Jul/19
Russia 7.50 Jun/19
Brazil 6.50 Jun/19
South Africa 6.50 Jul/19
India 5.75 Jul/19
Indonesia 5.75 Jul/19
China 4.35 Jun/19
Saudi Arabia 3.00 Jun/19
United States 2.50 Jun/19
Canada 1.75 Jul/19
Singapore 1.67 Jun/19
South Korea 1.50 Jul/19
Australia 1.00 Jul/19
United Kingdom 0.75 Jun/19
Euro Area 0.00 Jun/19
France 0.00 Jun/19
Germany 0.00 Jun/19
Italy 0.00 Jun/19
Netherlands 0.00 Jun/19
Spain 0.00 Jun/19
Japan -0.10 Jun/19
Switzerland -0.75 Jun/19


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