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

The Bank of England voted unanimously to leave the Bank Rate unchanged at 0.75 percent on September 13th 2018, following a 25bps hike in the previous meeting. The decision came in line with market expectations. Interest Rate in the United Kingdom averaged 7.57 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 Keeps Rates Steady

The Bank of England voted unanimously to leave the Bank Rate unchanged at 0.75 percent on September 13th 2018, following a 25bps hike in the previous meeting. The decision came in line with market expectations. The Committee 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:

In the MPC’s most recent economic projections, set out in the August Inflation Report, GDP was expected to grow by around 1¾% per year on average over the forecast period, conditioned on the gently rising path of Bank Rate implied by market yields at that time. Although modest by historical standards, the projected pace of GDP growth was slightly faster than the diminished rate of supply growth, which averaged around 1½% per year. With a very limited degree of slack remaining, a small margin of excess demand was therefore projected to emerge by late 2019 and build thereafter, feeding through into higher growth in domestic costs than has been seen over recent years. The contribution of external cost pressures, which has accounted for above-target inflation since the beginning of 2017, was projected to ease over the forecast period. Taking these influences together, and conditioned on the gently rising path of Bank Rate, CPI inflation remained slightly above 2% through most of the forecast period, reaching the target in the third year.

Recent news in UK macroeconomic data has been limited and the MPC’s August projections appear to be broadly on track. UK GDP grew by 0.4% in 2018 Q2 and by 0.6% in the three months to July. The UK labour market has continued to tighten, with the unemployment rate falling to 4.0% and the number of vacancies rising further.  Regular pay growth has risen further to around 3% on a year earlier. CPI inflation was 2.5% in July.

The global economy still appears to be growing at above-trend rates, although recent developments are likely to have increased downside risks around global growth to some degree. In emerging market economies, indicators of growth have continued to soften and financial conditions have tightened further, in some cases markedly. Recent announcements of further protectionist measures by the United States and China, if implemented, could have a somewhat more negative impact on global growth than was anticipated at the time of the August Report.

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. Since the Committee’s previous meeting, there have been indications, most prominently in financial markets, of greater uncertainty about future developments in the withdrawal process.

The Committee judges that, were the economy to continue to develop broadly in line with the August 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. As before, these projections were conditioned on the expectation of a smooth adjustment to the average of a range of possible outcomes for the United Kingdom’s eventual trading relationship with the European Union. At this meeting, the Committee judged that the current stance of monetary policy remained appropriate. Any future increases in Bank Rate are likely to be at a gradual pace and to a limited extent.

BoE | Joana Taborda | joana.taborda@tradingeconomics.com
9/13/2018 11:29:44 AM

Calendar GMT Actual Previous Consensus TEForecast
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% 0.75% 0.75%
2018-10-23 10:30 AM BoE Haldane Speech
2018-10-23 03:20 PM BoE Gov Carney Speech
2018-10-25 08:00 PM BoE Woods Speech

United Kingdom Money Last Previous Highest Lowest Unit
Interest Rate 0.75 0.75 17.00 0.25 percent [+]
Interbank Rate 0.80 0.80 15.63 0.28 percent [+]
Money Supply M0 82043.00 81843.00 82242.00 3529.00 GBP Million [+]
Money Supply M1 1746719.00 1735756.00 1746719.00 82310.00 GBP Million [+]
Money Supply M2 2377022.00 2371545.00 2377022.00 167429.00 GBP Million [+]
Money Supply M3 2833088.00 2828964.00 2833088.00 262973.00 GBP Million [+]
Central Bank Balance Sheet 592950.00 592856.00 592950.00 76991.00 GBP Million [+]
Banks Balance Sheet 3746875.00 3760435.00 4060273.00 3342179.00 GBP Million [+]
Foreign Exchange Reserves 161256.43 163819.56 164685.93 35190.42 USD Million [+]
Loans to Private Sector 2430626.00 2371947.00 2813008.00 8755.00 GBP Million [+]
Deposit Interest Rate 0.50 0.50 4.25 0.00 percent [+]
Lending Rate 1.00 1.00 4.75 0.50 percent [+]
Private Debt to GDP 229.40 228.80 247.70 157.30 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 October of 2018.

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

interest rate by Country
Country Last
Argentina 72.88 Oct/18
Turkey 24.00 Sep/18
Mexico 7.75 Oct/18
Russia 7.50 Sep/18
Brazil 6.50 Sep/18
India 6.50 Oct/18
South Africa 6.50 Sep/18
Indonesia 5.75 Sep/18
China 4.35 Sep/18
Saudi Arabia 2.75 Sep/18
United States 2.25 Sep/18
Australia 1.50 Oct/18
Canada 1.50 Sep/18
South Korea 1.50 Oct/18
Singapore 1.11 Sep/18
United Kingdom 0.75 Sep/18
Euro Area 0.00 Sep/18
France 0.00 Sep/18
Germany 0.00 Sep/18
Italy 0.00 Sep/18
Netherlands 0.00 Sep/18
Spain 0.00 Sep/18
Japan -0.10 Sep/18
Switzerland -0.75 Sep/18