The Bank of England raised the key Bank Rate by 25bps to 1% during its May 2022 meeting, which is the 4th consecutive rate hike, pushing borrowing costs to the highest since early 2009. The decision came in line with expectations although 3 members voted for a bigger 50bps increase. Policymakers said global inflationary pressures have intensified sharply following Russia’s invasion of Ukraine which has led to a material deterioration in the outlook for UK growth. The UK economy is estimated to have risen by 0.9% in Q1 but the GDP is expected to be broadly unchanged in Q2 and to contract around 1% in Q4, due to a decline in households’ incomes, including that stemming from the projected rise of around 40% in retail gas and electricity prices when the Ofgem price caps are next reset in October. In 2023, GDP is seen shrinking by 0.25%. Meanwhile, inflation is expected to rise further over the remainder of the year, to just over 9% in Q2 and averaging slightly over 10% at its peak in Q4. source: Bank of England

Interest Rate in the United Kingdom averaged 7.17 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 May of 2022.

Interest Rate in the United Kingdom is expected to be 1.25 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
2022-05-05 11:00 AM BoE Interest Rate Decision 1% 0.75% 1% 1%
2022-05-05 11:00 AM BoE MPC Vote Hike 9/9 8/9 8/9
2022-05-05 11:00 AM BoE MPC Vote Unchanged 0/9 1/9 1/9
2022-05-20 07:30 AM BoE Pill Speech
2022-06-16 11:00 AM BoE MPC Vote Cut
2022-06-16 11:00 AM MPC Meeting Minutes


Related Last Previous Unit Reference
Interest Rate 1.00 0.75 percent May 2022
Money Supply M0 94557.00 95598.00 GBP Million Apr 2022
Money Supply M1 2425104.00 2385190.00 GBP Million Mar 2022
Money Supply M2 3031444.00 2993506.00 GBP Million Mar 2022
Money Supply M3 3562321.00 3527939.00 GBP Million Mar 2022
Central Bank Balance Sheet 1087872.00 1088102.00 GBP Million May 2022
Foreign Exchange Reserves 190766.27 200329.33 USD Million Apr 2022
Banks Balance Sheet 4519849.00 4524669.00 GBP Million Mar 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
1.00 0.75 17.00 0.10 1971 - 2022 percent Daily

News Stream
BoE Raises Interest Rate for 4th Time
The Bank of England raised the key Bank Rate by 25bps to 1% during its May 2022 meeting, which is the 4th consecutive rate hike, pushing borrowing costs to the highest since early 2009. The decision came in line with expectations although 3 members voted for a bigger 50bps increase. Policymakers said global inflationary pressures have intensified sharply following Russia’s invasion of Ukraine which has led to a material deterioration in the outlook for UK growth. The UK economy is estimated to have risen by 0.9% in Q1 but the GDP is expected to be broadly unchanged in Q2 and to contract around 1% in Q4, due to a decline in households’ incomes, including that stemming from the projected rise of around 40% in retail gas and electricity prices when the Ofgem price caps are next reset in October. In 2023, GDP is seen shrinking by 0.25%. Meanwhile, inflation is expected to rise further over the remainder of the year, to just over 9% in Q2 and averaging slightly over 10% at its peak in Q4.
2022-05-05
BoE to Raise Rates to 13-Year High
The Bank of England is expected to raise the key Bank Rate by 25bps to 1% today, which would be a 4th consecutive rate hike, pushing borrowing costs to the highest since early 2009, although the inflation rate continues to rise to 30-year highs and signs of an economic slowdown emerge. Governor Andrew Bailey recently said the bank is walking a "narrow path" between growth and inflation, and implied that the bank could take a more incremental approach to tightening instead of a more aggressive one. Investors will also be looking for any clues on the central bank's plans to sell off some of its £847 billion in government bond holdings and new forecasts for both inflation and growth.
2022-05-05
BoE Hikes Rates for 3rd Time
The Bank of England raised its key Bank Rate by 25bps to 0.75% during its March 2022 meeting, in line with expectations. It is the third consecutive rise in borrowing costs, taking interest rates back to pre-Covid levels. Developments since the February Report, in particular the invasion of Ukraine by Russia, are likely to accentuate both the peak in inflation and the adverse impact on activity by intensifying the squeeze on household incomes. Inflation is expected to increase further in coming months, to around 8% in 2022 Q2, and perhaps even higher later this year. Based on its current assessment of the economic situation, the Committee judges that some further modest tightening in monetary policy may be appropriate in the coming months, but there are risks on both sides of that judgement depending on how medium-term prospects for inflation evolve.
2022-03-17