The Bank of England voted unanimously to maintain the key bank rate at a record low of 0.1% and the size of its bond-buying program at £745 billion as expected during its August meeting. Policymakers said Britain's economy will take longer to recover from the coronavirus-induced recession than initially thought and warned about the risks of cutting interest rates below zero. Meanwhile, the central bank said CPI inflation is expected to fall further below the 2% target, largely reflecting the direct and indirect effects of Covid-19.

Interest Rate in the United Kingdom averaged 7.36 percent from 1971 until 2020, reaching an all time high of 17 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 August of 2020. source: Bank of England

Interest Rate in the United Kingdom is expected to be 0.10 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 0.10 in 12 months time. In the long-term, the United Kingdom Interest Rate is projected to trend around 0.10 percent in 2021 and 0.50 percent in 2022, according to our econometric models.

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United Kingdom Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
0.10 0.10 17.00 0.10 1971 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-08-06 06:00 AM BoE Interest Rate Decision 0.1% 0.1% 0.1% 0.1%
2020-08-06 06:00 AM BoE Quantitative Easing £745B £745B £745B £745B
2020-08-06 06:00 AM BoE MPC Vote Hike 0/9 0/9 0/9 0/9
2020-08-06 06:00 AM BoE MPC Vote Unchanged 9/9 9/9 9/9 9/9
2020-09-17 11:00 AM BoE MPC Vote Unchanged 9/9 9/9
2020-09-17 11:00 AM BoE MPC Vote Hike 0/9 0/9
2020-09-17 11:00 AM MPC Meeting Minutes
2020-09-17 11:00 AM BoE Quantitative Easing £745B £745B


News Stream
BoE Holds Rates, Says UK Recovery Will Take Longer
The Bank of England voted unanimously to maintain the key bank rate at a record low of 0.1% and the size of its bond-buying program at £745 billion as expected during its August meeting. Policymakers said Britain's economy will take longer to recover from the coronavirus-induced recession than initially thought and warned about the risks of cutting interest rates below zero. Meanwhile, the central bank said CPI inflation is expected to fall further below the 2% target, largely reflecting the direct and indirect effects of Covid-19.
2020-08-06
BoE Expands Bond-Buying as Expected
The Bank of England voted unanimously to maintain the key bank rate at a record low of 0.1% on June 18th 2020, in line with market forecasts. Policymakers also voted by a majority of 8-1 to increase the target stock of purchased UK government bonds, financed by the issuance of central bank reserves, by an additional £100 billion, to take the total stock of asset purchases to £745 billion. The programme is expected to be complete around the turn of the year. The central bank will continue with the existing programme of £200 billion of UK government bond and sterling non-financial investment-grade corporate bond purchases. Policymakers added that the fall in global and UK GDP in Q2 will be less severe than anticipated although the outlook remains unusually uncertain and the economy, and especially the labour market, will therefore take some time to recover. The central bank stands ready to take further action as necessary to support the economy, officials added.
2020-06-18
BoE Expected to Expand Bond-Buying Program
The Bank of England is expected to increase its asset-purchase program by at least GBP 100 billion on June 18th 2020, aiming to support the UK economy and ensure stability of financial markets. The additional stimulus would complement the GBP 200 billion announced in March when the coronavirus pandemic started, bringing total bond purchases to GBP 745 billion. At the same time, the central bank is seen extending the QE programme beyond July. Meanwhile, the bank rate is expected to be left at a record low of 0.1 percent. The Bank of England voted unanimously to maintain the key bank rate at a record low of 0.1% on May 7th 2020, in line with market forecasts.
2020-06-18
BoE Holds Rates, Stands Ready for Further Stimulus
The Bank of England voted unanimously to maintain the key bank rate at a record low of 0.1% on May 7th 2020, in line with market forecasts. Policymakers also left the bond buying program at £645 billion, although two members voted for a £100 billion increase, in a further sign that fresh stimulus may be under way. The central bank expects the GDP to contract by 14% in 2020 due to the coronavirus pandemic. The inflation rate is seen falling to 0.6% and unemployment is like to rise to 8%.
2020-05-07

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).