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.

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United Kingdom Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-08-04 11:00 AM BoE Interest Rate Decision 1.75% 1.25% 1.75% 1.75%
2022-08-04 11:00 AM BoE MPC Vote Hike 9/9 9/9 9/9
2022-08-04 11:00 AM BoE MPC Vote Unchanged 0/9 0/9 0/9
2022-09-15 11:00 AM BoE MPC Vote Unchanged
2022-09-15 11:00 AM BoE MPC Vote Cut
2022-09-15 11:00 AM MPC Meeting Minutes


Related Last Previous Unit Reference
Interest Rate 1.75 1.25 percent Aug 2022
Money Supply M0 94913.00 94709.00 GBP Million Jul 2022
Money Supply M1 2451924.00 2427138.00 GBP Million Jun 2022
Money Supply M2 3070326.00 3038313.00 GBP Million Jun 2022
Money Supply M3 3574081.00 3540126.00 GBP Million Jun 2022
Foreign Exchange Reserves 184043.27 185229.72 USD Million Jul 2022
Central Bank Balance Sheet 1087970.00 1088266.00 GBP Million Jul 2022
Banks Balance Sheet 4520746.00 4550345.00 GBP Million Jun 2022
Loans to Private Sector 2698489.00 2663478.00 GBP Million Dec 2021
Deposit Interest Rate 0.25 0.00 percent Feb 2022
Lending Rate 0.75 0.50 percent Feb 2022

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).
Actual Previous Highest Lowest Dates Unit Frequency
1.75 1.25 17.00 0.10 1971 - 2022 percent Daily

News Stream
BoE Raises Rates by 50bps
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.
2022-08-04
BoE Seen Raising Rates by 50bps
The Bank of England is expected to raise its main rate by 50bps to 1.75% during its August 2022 meeting, which would be the largest rate hike since 1995, bringing borrowing costs to the highest since 2009. It will be the sixth consecutive rate increase as inflation rose by more than expected to a fresh 40-year high of 9.4% in June. The central bank will also deliver its quarterly outlook, with markets expecting inflation will peak further past the more than 11% the BoE currently predicts due to a surge in natural gas prices. Looking at growth, there are growing concerns that a recession is looming.
2022-08-04
BoE Lifts Rates by 25Bps
The Bank of England raised its main Bank Rate by 25bps to 1.25% during its June 2022 meeting, a fifth consecutive rate hike and pushing borrowing costs to the highest in 13 years as it tries to temper soaring inflation. 3 policymakers voted for a bigger 50bps increase and the central bank raised its commitment to bring inflation back to the 2% target and 'act forcefully' if necessary. The central bank now expects inflation to be over 9% during the next few months and to rise to slightly above 11% in October while GDP growth is seen slowing sharply over the first half of the forecast period.
2022-06-16