The Bank of England voted by a majority of 7-2 to raise interest rates by 75 bps to 3% during its November meeting, the largest rate hike since 1989, increasing the cost of borrowing to the highest level since late-2008. Policymakers voiced concerns about stubbornly high inflation, which rose back to a 40-year high in September, amid weakening economic outlook. The central bank also said further increases in Bank Rate may be required for a sustainable return of inflation to target, albeit to a peak lower than priced into financial markets. Looking ahead, GDP is projected to continue to fall throughout 2023 and 2024 H1, as high energy prices and materially tighter financial conditions weigh on spending, while CPI inflation starts to fall back from early next year, before dropping sharply to some way below the 2% target in two years’ time. source: Bank of England

Interest Rate in the United Kingdom averaged 7.14 percent from 1971 until 2022, reaching an all time high of 17.00 percent in November of 1979 and a record low of 0.10 percent in March of 2020. This page provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. United Kingdom Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on November of 2022.

Interest Rate in the United Kingdom is expected to be 3.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the United Kingdom Interest Rate is projected to trend around 5.20 percent in 2023 and 4.70 percent in 2024, according to our econometric models.

Ok
Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.

The Trading Economics Application Programming Interface (API) provides direct access to our data. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds.

Please Paste this Code in your Website
width
height
United Kingdom Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-11-03 12:00 PM BoE MPC Vote Cut 0/9 0/9 0/9 0/9
2022-11-03 12:00 PM BoE MPC Vote Unchanged 0/9 0/9 0/9 0/9
2022-11-03 12:00 PM BoE MPC Vote Hike 9/9 9/9 9/9 9/9
2022-11-29 12:35 PM BoE L Mann Speech
2022-11-30 08:30 AM BoE Pill Speech
2022-12-15 12:00 PM BoE Interest Rate Decision 3% 3.5%


Related Last Previous Unit Reference
Interest Rate 3.00 2.25 percent Nov 2022
Money Supply M0 93602.00 94326.00 GBP Million Oct 2022
Money Supply M1 2563816.00 2484423.00 GBP Million Sep 2022
Money Supply M2 3213819.00 3112903.00 GBP Million Sep 2022
Money Supply M3 3699159.00 3604020.00 GBP Million Sep 2022
Central Bank Balance Sheet 1094203.00 1094220.00 GBP Million Nov 2022
Foreign Exchange Reserves 176103.92 171551.20 USD Million Oct 2022
Banks Balance Sheet 4531793.00 4513549.00 GBP Million Sep 2022
Loans to Private Sector 2731774.00 2733887.00 GBP Million Jun 2022
Deposit Interest Rate 2.75 2.00 percent Nov 2022
Lending Rate 3.25 2.50 percent Nov 2022

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).
Actual Previous Highest Lowest Dates Unit Frequency
3.00 2.25 17.00 0.10 1971 - 2022 percent Daily

News Stream
BoE Delivers Largest Rate Hike in 33 Years
The Bank of England voted by a majority of 7-2 to raise interest rates by 75 bps to 3% during its November meeting, the largest rate hike since 1989, increasing the cost of borrowing to the highest level since late-2008. Policymakers voiced concerns about stubbornly high inflation, which rose back to a 40-year high in September, amid weakening economic outlook. The central bank also said further increases in Bank Rate may be required for a sustainable return of inflation to target, albeit to a peak lower than priced into financial markets. Looking ahead, GDP is projected to continue to fall throughout 2023 and 2024 H1, as high energy prices and materially tighter financial conditions weigh on spending; while CPI inflation starts to fall back from early next year, before dropping sharply to some way below the 2% target in two years’ time.
2022-11-03
BoE to Deliver Biggest Rate Hike in 33 Years
The Bank of England is set to raise interest rates by 75bps to 3% during its November 2022 meeting, which would be its largest rate hike since 1989, pushing borrowing costs to the highest since late-2008. It would also mark the eighth consecutive interest rate rise, as the central bank tries to push inflation down which holds at 40-year highs, while a recession is under way. Policymakers are likely to be divided on the size of the rate hike, with some preferring a smaller 50bps increase and others an even bigger full percentage point. Officials will also publish new forecasts for the economy and inflation, although the outlook remains delicate as the new government is expected to publish a key economic plan on November 17th only. Given the challenging outlook, some investors expect the BoE to set a more dovish tone.
2022-11-03
BoE Announces Gilt Market Operations
The Bank of England announced it will carry out temporary purchases of long-dated UK government bonds from 28 September until 14 October to restore orderly market conditions. These purchases will be strictly time-limited and are intended to tackle a specific problem in the long-dated government bond market. The central bank also said the MPC’s annual target of an £80bn stock reduction is unaffected and unchanged. Still, the Bank’s Executive has postponed the beginning of gilt sale operations that were due to commence next week to 31 October and proceed thereafter. The central bank move came after the British pound tumbled to record lows against its US counterpart and UK bond prices collapsed in response to British finance minister Kwasi Kwarteng’s mini-budget, which includes £45bn in unfunded tax cuts. Earlier in September, the BoE raised its key interest rate by 50bps to 2.25%, the 7th consecutive rate hike, and pushing borrowing costs to the highest since 2008.
2022-09-28