United Kingdom Interest Rate  1971-2017 | Data | Chart | Calendar

The Bank of England voted by seven to two to keep the Bank Rate at a record low of 0.25 percent on September 14th, 2017, as widely expected, saying estimates of private final demand were softer than anticipated and underlying pay growth has shown some signs of recovery, albeit remaining modest. Also, the Committee voted unanimously to keep the stock of UK government bond purchases at £435 billion and the stock of sterling non-financial investment-grade corporate bond purchases at £10 billion. Still, policymakers agreed that if the economy continues to grow and underlying inflationary pressure rises further, some withdrawal of monetary stimulus is likely to be appropriate over the coming months in order to return inflation sustainably to target. Interest Rate in the United Kingdom averaged 7.68 percent from 1971 until 2017, 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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UK Interest Rates Likely to Rise Over Coming Months


The withdrawal of monetary stimulus is likely to be appropriate over the coming months, if the economy and price pressures keep growing, Bank of England Governor Mark Carney said in a speech at the IMF on Monday. Still, there are considerable risks to the UK outlook, which include the response of households, businesses and financial markets to developments related to the process of EU withdrawal, he added.

Excerpts from Bank of England Governor Mark Carney speech at the IMF:

On balance, the de-integration effects of Brexit can be expected to steepen the Phillips Curve and to be inflationary. At present, the main question concerns the extent to which this adjustment has been brought forward. 

The latest indicators are consistent with UK demand growing a little in excess of the diminished rate of potential supply growth, and the continued erosion of what is now a fairly limited degree of spare capacity. If anything, recent developments suggest that the remaining spare capacity in the economy is being absorbed a little more rapidly than had been expected, and that inflation remains likely to overshoot the 2% target over the next three years.

The MPC’s reaction function is clear. The continued erosion of slack lessens the trade-off that the MPC is required to balance and, all else equal, reduces the MPC’s tolerance of above-target inflation.

As the Committee stated last week, if the economy continues to follow a path consistent with the prospect of a continued erosion of slack and a gradual rise in underlying inflationary pressure then, with the further lessening in the trade-off that this would imply, some withdrawal of monetary stimulus is likely to be appropriate over the coming months in order to return inflation sustainably to target.

The case for a modest monetary tightening is reinforced by the possibility that global equilibrium interest rates may be rising, meaning that monetary policy has to move in order to stand still.

Any prospective increases in Bank Rate would be expected to be at a gradual pace and to a limited extent, and to be consistent with monetary policy continuing to provide substantial support to the economy.

There remain considerable risks to the UK outlook, which include the response of households, businesses and financial markets to developments related to the process of EU withdrawal. The MPC will respond to these developments as they occur insofar as they affect the behaviour of households and businesses, and the outlook for inflation. 

BoE | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/18/2017 3:39:37 PM



Calendar GMT Actual Previous Consensus TEForecast
2017-09-14 11:00 AM BoE Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2017-09-14 11:00 AM BoE Quantitative Easing £435B £435B £435B £435B
2017-09-14 11:00 AM BoE MPC Vote Hike 2/9 2/8 2/9 3/9
2017-09-25 08:30 AM BoE FPC Statement
2017-09-28 08:15 AM BoE Gov Carney Speech
2017-09-29 12:30 PM BoE Broadbent Speech


United Kingdom Money Last Previous Highest Lowest Unit
Interest Rate 0.25 0.25 17.00 0.25 percent [+]
Interbank Rate 0.33 0.33 15.63 0.28 percent [+]
Money Supply M0 82267.00 82355.00 82402.00 3529.00 GBP Million [+]
Money Supply M1 1659614.00 1663350.00 1663350.00 82307.00 GBP Million [+]
Money Supply M2 1661481.00 1659400.00 1661481.00 114632.00 GBP Million [+]
Money Supply M3 2730436.00 2730061.00 2730436.00 262939.00 GBP Million [+]
Central Bank Balance Sheet 405132.00 404299.00 414839.00 77638.00 GBP Million [+]
Banks Balance Sheet 3855579.00 3860304.00 4060273.00 3342179.00 GBP Million [+]
Foreign Exchange Reserves 160799.22 161311.29 161311.29 35190.42 USD Million [+]
Loans to Private Sector 2370176.00 2320610.00 2813104.00 8755.00 GBP Million [+]
Deposit Interest Rate 0.00 0.00 4.25 0.00 percent [+]
Private Debt to GDP 230.51 224.96 241.34 153.37 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 September of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
0.25 0.25 17.00 0.25 1971 - 2017 percent Daily




interest rate by Country

Last
Russia 8.50 Sep/17
Brazil 8.25 Sep/17
Turkey 8.00 Sep/17
Mexico 7.00 Aug/17
India 6.00 Aug/17
China 4.35 Aug/17
Indonesia 4.25 Sep/17
Australia 1.50 Sep/17
South Korea 1.25 Aug/17
United States 1.25 Sep/17
Canada 1.00 Sep/17
United Kingdom 0.25 Sep/17
Euro Area 0.00 Sep/17
France 0.00 Sep/17
Germany 0.00 Sep/17
Italy 0.00 Sep/17
Netherlands 0.00 Sep/17
Spain 0.00 Sep/17
Japan -0.10 Sep/17
Switzerland -0.75 Sep/17