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

The Bank of England raised its benchmark Bank Rate by 25bps to 0.5 percent on November 2nd 2017, in line with market expectations, signalling the beginning of a gradual tightening process. It is the first rate increase in a decade after inflation stayed well above the 2 percent target for the eighth straight month in September amid a weaker sterling and higher energy prices. Policymakers said the inflation is expected to fall in 2018, conditioned on the gently rising path of the Bank Rate. Interest Rate in the United Kingdom averaged 7.67 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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BoE Hikes Key Rate to 0.5%


The Bank of England raised its benchmark Bank Rate by 25bps to 0.5 percent on November 2nd 2017, in line with market expectations, signalling the beginning of a gradual tightening process. It is the first rate increase in a decade after inflation stayed well above the 2 percent target for the eighth straight month in September amid a weaker sterling and higher energy prices. Policymakers said the inflation is expected to fall in 2018, conditioned on the gently rising path of the Bank Rate. The Monetary Policy Committee (MPC) voted by a majority of 7-2 to increase the Bank Rate but voted unanimously to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £10 billion and the stock of UK government bond purchases, financed by the issuance of central bank reserves, at £435 billion.

Excerpts from the BoE Monetary Policy Summary:

The MPC’s outlook for inflation and activity in the November Inflation Report is broadly similar to its projections in August. In the MPC’s central forecast, conditioned on the gently rising path of Bank Rate implied by current market yields, GDP grows modestly over the next few years at a pace just above its reduced rate of potential. Consumption growth remains sluggish in the near term before rising, in line with household incomes. Net trade is bolstered by the strong global expansion and the past depreciation of sterling. Business investment is being affected by uncertainties around Brexit, but it continues to grow at a moderate pace, supported by strong global demand, high rates of profitability, the low cost of capital and limited spare capacity.

The decision to leave the European Union is having a noticeable impact on the economic outlook. The overshoot of inflation throughout the forecast predominantly reflects the effects on import prices of the referendum-related fall in sterling. Uncertainties associated with Brexit are weighing on domestic activity, which has slowed even as global growth has risen significantly. And Brexit-related constraints on investment and labour supply appear to be reinforcing the marked slowdown that has been increasingly evident in recent years in the rate at which the economy can grow without generating inflationary pressures.

Monetary policy cannot prevent either the necessary real adjustment as the United Kingdom moves towards its new international trading arrangements or the weaker real income growth that is likely to accompany that adjustment over the next few years. It can, however, support the economy during the adjustment process. The MPC’s remit specifies that, in such exceptional circumstances, the Committee must balance any trade-off between the speed at which it intends to return inflation sustainably to the target and the support that monetary policy provides to jobs and activity. 

The steady erosion of slack has reduced the degree to which it is appropriate for the MPC to accommodate an extended period of inflation above the target. Unemployment has fallen to a 42-year low and the MPC judges that the level of remaining slack is limited. The global economy is growing strongly, domestic financial conditions are highly accommodative and consumer confidence has remained resilient. In line with the framework set out at the time of the referendum, the MPC now judges it appropriate to tighten modestly the stance of monetary policy in order to return inflation sustainably to the target. Accordingly, the Committee voted by 7-2 to raise Bank Rate by 0.25 percentage points, to 0.5%. Monetary policy continues to provide significant support to jobs and activity in the current exceptional circumstances. All members agree that any future increases in Bank Rate would be expected to be at a gradual pace and to a limited extent.

There remain considerable risks to the 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 developments as they occur insofar as they affect the behaviour of households and businesses, and the outlook for inflation. The Committee will monitor closely the incoming evidence on these and other developments, including the impact of today’s increase in Bank Rate, and stands ready to respond to changes in the economic outlook as they unfold to ensure a sustainable return of inflation to the 2% target.

BoE | Joana Taborda | joana.taborda@tradingeconomics.com
11/2/2017 12:26:11 PM



Calendar GMT Actual Previous Consensus TEForecast
2017-08-03 11:00 AM BoE Quantitative Easing £435B £435B £435B £435B
2017-09-14 11:00 AM BoE Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2017-11-02 12:00 PM BoE Interest Rate Decision 0.5% 0.25% 0.5% 0.5%
2017-11-20 06:30 PM BoE Ramsden Speech
2017-12-14 12:00 PM BoE Interest Rate Decision 0.5% 0.5%


United Kingdom Money Last Previous Highest Lowest Unit
Interest Rate 0.50 0.25 17.00 0.25 percent [+]
Interbank Rate 0.53 0.53 15.63 0.28 percent [+]
Money Supply M0 82530.00 82669.00 82669.00 3529.00 GBP Million [+]
Money Supply M1 1701384.00 1689178.00 1701384.00 82307.00 GBP Million [+]
Money Supply M2 1669494.00 1663597.00 1669494.00 114632.00 GBP Million [+]
Money Supply M3 2784211.00 2767937.00 2784211.00 262939.00 GBP Million [+]
Central Bank Balance Sheet 555670.00 555327.00 555670.00 76991.00 GBP Million [+]
Banks Balance Sheet 3906698.00 3876230.00 4060273.00 3342179.00 GBP Million [+]
Foreign Exchange Reserves 153924.00 154314.90 161311.29 35190.42 USD Million [+]
Loans to Private Sector 2370133.00 2320610.00 2813104.00 8755.00 GBP Million [+]
Deposit Interest Rate 0.25 0.00 4.25 0.00 percent [+]
Lending Rate 0.75 0.50 4.75 0.50 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 November of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
0.50 0.25 17.00 0.25 1971 - 2017 percent Daily




interest rate by Country
Country Last
Russia 8.25 Oct/17
Turkey 8.00 Oct/17
Brazil 7.50 Oct/17
Mexico 7.00 Nov/17
India 6.00 Oct/17
China 4.35 Oct/17
Indonesia 4.25 Nov/17
Australia 1.50 Nov/17
South Korea 1.25 Oct/17
United States 1.25 Nov/17
Canada 1.00 Oct/17
United Kingdom 0.50 Nov/17
Euro Area 0.00 Oct/17
France 0.00 Oct/17
Germany 0.00 Oct/17
Italy 0.00 Oct/17
Netherlands 0.00 Oct/17
Spain 0.00 Oct/17
Japan -0.10 Oct/17
Switzerland -0.75 Oct/17