The Bank of England raised its main rate by 50bps to 1.75% during its August 2022 meeting, the sixth consecutive rate hike, and pushing borrowing costs to the highest level since 2009, matching market forecasts. It is the biggest rate increase since 1995. A near doubling in wholesale gas prices since May feeds through to retail energy prices and it will exacerbate the fall in real incomes for UK households and further increase UK CPI inflation in the near term, the bank said. According to new BOE projections, CPI inflation is expected to rise to 13.3% in October, and to remain at very elevated levels throughout much of 2023, before falling to the 2% target two years ahead. Looking at growth, the United Kingdom is now projected to enter a recession in the fourth quarter which would last for five quarters. source: Bank of England
Interest Rate in the United Kingdom averaged 7.15 percent from 1971 until 2022, 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 August of 2022.
Interest Rate in the United Kingdom is expected to be 2.25 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 2.75 percent in 2023 and 3.00 percent in 2024, according to our econometric models.