The Bank of England left monetary policy unchanged during its August 2021 meeting, with policymakers reiterating that they do not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably. Still, officials signaled some modest tightening of monetary policy over the next two years was likely to be necessary if the economy continues to improve. The central bank also said it would start reducing its stock of bonds when its policy rate reaches 0.5% by not reinvesting proceeds and it would start considering selling stock of purchased assets when the rate reaches at least 1%. UK GDP is projected to grow by 7.25% in 2021, unchanged from its May forecast, and by 6% in 2022 (vs 5.75% from its May forecast). The central bank also said it now saw inflation hitting a peak of 4% in late 2021 and early 2022 (vs 2.5% from its May forecast). source: Bank of England

Interest Rate in the United Kingdom averaged 7.25 percent from 1971 until 2021, 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 September of 2021.

Interest Rate in the United Kingdom is expected to be 0.10 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 0.50 percent in 2022 and 1.00 percent in 2023, according to our econometric models.

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United Kingdom Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
0.10 0.10 17.00 0.10 1971 - 2021 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2021-08-05 11:00 AM BoE Interest Rate Decision 0.1% 0.1% 0.1% 0.1%
2021-08-05 11:00 AM BoE Quantitative Easing £875B £875B £875B £875B
2021-08-05 11:00 AM BoE MPC Vote Hike 0/8 0/9 0/8 0/8
2021-08-05 11:00 AM BoE MPC Vote Unchanged 8/8 9/9 8/8 8/8
2021-09-22 04:00 PM BoE Woods Speech
2021-09-23 11:00 AM BoE MPC Vote Hike 0/8 0/9 0/9
2021-09-23 11:00 AM MPC Meeting Minutes
2021-09-23 11:00 AM BoE Quantitative Easing £875B £875B £875B


News Stream
BoE Holds Policy, Signals Future Tightening
The Bank of England left monetary policy unchanged during its August 2021 meeting, with policymakers reiterating that they do not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably. Still, officials signaled some modest tightening of monetary policy over the next two years was likely to be necessary if the economy continues to improve. The central bank also said it would start reducing its stock of bonds when its policy rate reaches 0.5% by not reinvesting proceeds and it would start considering selling stock of purchased assets when the rate reaches at least 1%. UK GDP is projected to grow by 7.25% in 2021, unchanged from its May forecast, and by 6% in 2022 (vs 5.75% from its May forecast). The central bank also said it now saw inflation hitting a peak of 4% in late 2021 and early 2022 (vs 2.5% from its May forecast).
2021-08-05
BoE Set to Leave Monetary Policy Unchanged
The Bank of England is expected to keep its benchmark interest rate and its bond-buying program unchanged during its August meeting, but might move a step closer to tightening monetary policy amid signs that a split between officials is beginning to emerge. The central bank will probably unveil a path toward unwinding its £895 billion QE program, while it could also open the possibility of adopting negative rates. Although the two decisions pull in opposite directions, they could allow officials to bring forward the moment when they scale back their balance sheet. Two policymakers have said last month that the bank could reverse monetary stimulus sooner than expected due to a strong economic recovery and a jump in inflation; while most of the BoE's other rate-setters have said the acceleration in price growth is likely to prove transitory.
2021-08-05
Bank of England Keeps Dovish Tone
The Bank of England voted unanimously to keep its benchmark interest rate on hold at a record low of 0.1 percent during its June 2021 meeting, and by a majority of 8-1 to leave its bond-buying programme unchanged as widely expected. The central bank also reiterated it does not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2 percent inflation target sustainably. Policymakers said the economy would experience a temporary period of strong GDP growth following the relaxation of restrictions on economic activity, after which it will fall back. At the same time, CPI inflation is expected to pick up further above the target, owing primarily to developments in energy and other commodity prices, and is likely to exceed 3 percent for a temporary period, before returning to around 2 percent in the medium term.
2021-06-24
No Changes Expected from the BoE
The Bank of England is seen leaving its key rate unchanged at a record low of 0.1% and bond purchases at £3.4 billion per week in June. However, investors expect policymakers to give more clues on the economic outlook and acknowledge inflation is on the rise and the GDP rebound is surprisingly stronger-than-anticipated. Pressure is mounting on the central bank to take some action and change the rhetoric over inflation, specially after the Fed's hawkish shift last week. Still, the BoE will likely hold hold the current policy stance until at least August. June is also the last monetary policy meeting of Andy Haldane, the bank's chief economist, who has been warning that inflation threatens to overheat the UK economy.
2021-06-24

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).