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

The Bank of England voted unanimously to raise the Bank Rate by 25bps to 0.75 percent on August 2nd, saying recent data appeared to confirm that the dip in output in the first quarter was temporary and that the labour market has continued to tighten and wage growth has firmed. Also, the bank reiterated that an ongoing tightening of monetary policy over the forecast period will be appropriate to return inflation sustainably to the 2 percent target. Interest Rate in the United Kingdom averaged 7.58 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 Hikes Bank Rate to 0.75%


The Bank of England voted unanimously to raise the Bank Rate by 25bps at 0.75 percent on August 2nd, saying recent data appeared to confirm that the dip in output in the first quarter was temporary and that the labour market has continued to tighten and wage growth has firmed.

Excerpts from the BoE Monetary Policy Summary:

Since the May Inflation Report, the near-term outlook has evolved broadly in line with the MPC’s expectations. Recent data appear to confirm that the dip in output in the first quarter was temporary, with momentum recovering in the second quarter. The labour market has continued to tighten and unit labour cost growth has firmed.

The MPC’s updated projections for inflation and activity are set out in the August Inflation Report and are broadly similar to its projections in May.

In the MPC’s central forecast, conditioned on the gently rising path of Bank Rate implied by current market yields, GDP is expected to grow by around 1¾% per year on average over the forecast period. Global demand grows above its estimated potential rate and financial conditions remain accommodative, although both are somewhat less supportive of UK activity over the forecast period. Net trade and business investment continue to support UK activity, while consumption grows in line with the subdued pace of real incomes.

Although modest by historical standards, the projected pace of GDP growth over the forecast is slightly faster than the diminished rate of supply growth, which averages around 1½% per year. The MPC continues to judge that the UK economy currently has a very limited degree of slack. Unemployment is low and is projected to fall a little further. In the MPC’s central projection, therefore, a small margin of excess demand emerges by late 2019 and builds thereafter, feeding through into higher growth in domestic costs than has been seen over recent years.

CPI inflation was 2.4% in June, pushed above the 2% target by external cost pressures resulting from the effects of sterling’s past depreciation and higher energy prices. The contribution of external pressures is projected to ease over the forecast period while the contribution of domestic cost pressures is expected to rise.  Taking these influences together, and conditioned on the gently rising path of Bank Rate implied by current market yields, CPI inflation remains slightly above 2% through most of the forecast period, reaching the target in the third year.

The MPC continues to recognise that the economic outlook could be influenced significantly by the response of households, businesses and financial markets to developments related to the process of EU withdrawal.

The Committee also judges that, were the economy to continue to develop broadly in line with its Inflation Report projections, an ongoing tightening of monetary policy over the forecast period would be appropriate to return inflation sustainably to the 2% target at a conventional horizon. Any future increases in Bank Rate are likely to be at a gradual pace and to a limited extent.


Bank of England | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/2/2018 11:07:30 AM



Calendar GMT Actual Previous Consensus TEForecast
2018-06-21 11:00 AM BoE Quantitative Easing £435B £435B £435B £435B
2018-08-02 11:00 AM BoE Interest Rate Decision 0.75% 0.5% 0.75% 0.75%
2018-08-02 11:00 AM BoE Quantitative Easing £435B £435B £435B £435B
2018-09-13 11:00 AM BoE Interest Rate Decision 0.75% 0.75%
2018-11-01 12:00 PM BoE Interest Rate Decision 1%
2018-12-20 12:00 PM BoE Interest Rate Decision 1%


United Kingdom Money Last Previous Highest Lowest Unit
Interest Rate 0.75 0.50 17.00 0.25 percent [+]
Interbank Rate 0.80 0.80 15.63 0.28 percent [+]
Money Supply M0 81788.00 81741.00 82242.00 3529.00 GBP Million [+]
Money Supply M1 1734422.00 1731287.00 1734422.00 82310.00 GBP Million [+]
Money Supply M2 2371259.00 2373579.00 2373579.00 167429.00 GBP Million [+]
Money Supply M3 2829283.00 2828793.00 2829283.00 262973.00 GBP Million [+]
Central Bank Balance Sheet 590431.00 590549.00 591284.00 76991.00 GBP Million [+]
Banks Balance Sheet 3801389.00 3760938.00 4060273.00 3342179.00 GBP Million [+]
Foreign Exchange Reserves 160735.62 162730.15 164685.93 35190.42 USD Million [+]
Loans to Private Sector 2371585.00 2380345.00 2813033.00 8755.00 GBP Million [+]
Deposit Interest Rate 0.50 0.25 4.25 0.00 percent [+]
Lending Rate 1.00 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 August of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
0.75 0.50 17.00 0.25 1971 - 2018 percent Daily




interest rate by Country
Country Last
Turkey 17.75 Jul/18
Mexico 7.75 Aug/18
Russia 7.25 Jul/18
Brazil 6.50 Aug/18
India 6.50 Aug/18
Indonesia 5.50 Aug/18
China 4.35 Jul/18
United States 2.00 Aug/18
Australia 1.50 Aug/18
Canada 1.50 Jul/18
South Korea 1.50 Jul/18
United Kingdom 0.75 Aug/18
Euro Area 0.00 Jul/18
France 0.00 Jul/18
Germany 0.00 Jul/18
Italy 0.00 Jul/18
Netherlands 0.00 Jul/18
Spain 0.00 Jul/18
Japan -0.10 Jul/18
Switzerland -0.75 Jul/18


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