The Bank of England voted by a majority of 7-2 to hold its benchmark interest at a record low of 0.1% during its November meeting, and by a majority of 6-3 to leave its bond-buying programme unchanged, as policymakers weighed concerns over rising prices against the downside risks from slowing global growth and a potential upturn in UK unemployment following the end of the furlough schemes in September. The central bank also said that it would probably become necessary to increase rates over coming months in order to return inflation to the 2% target. Looking ahead, CPI inflation is now expected to peak at around 5% in April 2022, before falling back materially from the second half of next year, as supply disruption eases, global demand rebalances, and energy prices stop rising. At the same time, the UK unemployment rate is seen rising slightly in Q4 2021, while UK GDP is projected to get back to its pre-pandemic level in Q1 2022. source: Bank of England

Interest Rate in the United Kingdom averaged 7.22 percent from 1971 until 2021, 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 December of 2021.

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. In the long-term, the United Kingdom Interest Rate is projected to trend around 1.00 percent in 2022 and 1.50 percent in 2023, according to our econometric models.

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United Kingdom Interest Rate


Calendar GMT Actual Previous Consensus TEForecast
2021-11-04 12:00 PM BoE Interest Rate Decision 0.1% 0.1% 0.1% 0.1%
2021-11-04 12:00 PM BoE MPC Vote Cut 0/9 0/9 0/9
2021-11-04 12:00 PM BoE MPC Vote Unchanged 7/9 9/9 6/9
2021-12-06 11:30 AM BoE Broadbent Speech
2021-12-16 12:00 PM MPC Meeting Minutes
2021-12-16 12:00 PM BoE Quantitative Easing £875B £855B


Related Last Previous Unit Reference
Interest Rate 0.10 0.10 percent Nov/21
Money Supply M0 96031.00 95764.00 GBP Million Nov/21
Money Supply M1 2351144.00 2326402.00 GBP Million Oct/21
Money Supply M2 2961077.00 2937211.00 GBP Million Oct/21
Money Supply M3 3465824.00 3452743.00 GBP Million Oct/21
Central Bank Balance Sheet 1111565.00 1108397.00 GBP Million Dec/21
Foreign Exchange Reserves 202221.35 200923.27 USD Million Nov/21
Banks Balance Sheet 4434822.00 4366103.00 GBP Million Oct/21
Loans to Private Sector 2673081.00 2638005.00 GBP Million Jun/21
Deposit Interest Rate 0.00 0.00 percent Nov/21
Lending Rate 0.35 0.35 percent Nov/21

News Stream
Bank of England Holds Fire, Flags Future Rate Hikes
The Bank of England voted by a majority of 7-2 to hold its benchmark interest at a record low of 0.1% during its November meeting, and by a majority of 6-3 to leave its bond-buying programme unchanged, as policymakers weighed concerns over rising prices against the downside risks from slowing global growth and a potential upturn in UK unemployment following the end of the furlough schemes in September. The central bank also said that it would probably become necessary to increase rates over coming months in order to return inflation to the 2% target. Looking ahead, CPI inflation is now expected to peak at around 5% in April 2022, before falling back materially from the second half of next year, as supply disruption eases, global demand rebalances, and energy prices stop rising. At the same time, the UK unemployment rate is seen rising slightly in Q4 2021, while UK GDP is projected to get back to its pre-pandemic level in Q1 2022.
2021-11-04
Bank of England May Consider Interest Rate Hike
The Bank of England could become one of the first major central banks to start raising interest rates since the pandemic hit the world's economy in early 2020, as concerns over rising prices outweigh the downside risks from slowing global growth and a potential upturn in UK unemployment following the end of the furlough schemes in September. The fiscal watchdog said inflation could average at around 4% in 2022 and potentially reach 5%, which would be the highest for 13 years. Several policymakers, including Governor Andrew Bailey, have sounded increasingly anxious about the inflationary backdrop and have been calling for higher borrowing costs. Still, three officials are seen as firmly dovish, leaving the balance of power in the hands of Ben Broadbent and Jon Cunliffe, who has not spoken in public recently about rates.
2021-11-04
BOE Sees Stronger Case for Tightening
The Bank of England left its benchmark interest rate at a record low of 0.1% and its bond-buying program unchanged at a total of GBP 895 billion by the end of this year during its September 2021 meeting. The central bank also said that the case for modest tightening strengthened from August, as inflation could persist above 4% well into 2022, although considerable uncertainties remain. Reflecting that view, two policymakers voted for an early end to government bond purchases, compared with only one in the August meeting. Meanwhile, expectations for the level of UK GDP in Q3 were lowered by near 1% to around 2.5% below its pre-Covid level.
2021-09-23

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).