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

The Bank of England voted unanimously to keep the Bank Rate at 0.5 percent on February 8th as widely expected, saying that inflation is expected to remain around 3 percent in the short term, reflecting higher oil prices. The bank also warned that interest rates may rise sooner than anticipated, as the stronger economic growth will speed up inflation. Interest Rate in the United Kingdom averaged 7.64 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
width
height
Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.

The Trading Economics Application Programming Interface (API) provides direct access to our data. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds.




BoE Set to Hike Rates Earlier than Expected


The Bank of England voted unanimously to keep the Bank Rate at 0.5 percent on February 8th as widely expected, saying that inflation is expected to remain around 3 percent in the short term, reflecting recent higher oil prices. The bank also warned that interest rates may rise sooner than anticipated, as the economy will expand faster than expected over the next couple of years lifting inflation above 2 percent target.

The Committee also voted unanimously to keep the stock of UK government bond purchases at £435 billion and the stock of sterling non-financial investment-grade corporate bond purchases at £10 billion.

Excerpts from the BoE Monetary Policy Summary:

CPI inflation fell from 3.1% in November to 3.0% in December. Inflation is expected to remain around 3% in the short term, reflecting recent higher oil prices. More generally, sustained above-target inflation remains almost entirely due to the effects of higher import prices following sterling’s past depreciation. These external forces slowly dissipate over the forecast, while domestic inflationary pressures are expected to rise. The firming of shorter-term measures of wage growth in recent quarters, and a range of survey indicators that suggests pay growth will rise further in response to the tightening labour market, give increasing confidence that growth in wages and unit labour costs will pick up to target-consistent rates. On balance, CPI inflation is projected to fall back gradually over the forecast but remain above the 2% target in the second and third years of the MPC’s central projection.

As in previous Reports, the MPC’s projections are conditioned on the average of a range of possible outcomes for the United Kingdom’s eventual trading relationship with the European Union. The projections also assume that, in the interim, households and companies base their decisions on the expectation of a smooth adjustment to that new trading relationship. Developments regarding the United Kingdom’s withdrawal from the European Union – and in particular the reaction of households, businesses and asset prices to them – remain the most significant influence on, and source of uncertainty about, the economic outlook. In such exceptional circumstances, the MPC’s remit specifies that the Committee must balance any trade-off between the speed at which it intends to return inflation sustainably to the target and the support that monetary policy provides to jobs and activity.

Over the past year, a steady absorption of slack has reduced the degree to which it was appropriate for the MPC to accommodate an extended period of inflation above the target. Consequently, at its November 2017 meeting, the Committee tightened modestly the stance of monetary policy in order to return inflation sustainably to the target.

Since November, the prospect of a greater degree of excess demand over the forecast period and the expectation that inflation would remain above the target have further diminished the trade-off that the MPC is required to balance. It is therefore appropriate to set monetary policy so that inflation returns sustainably to its target at a more conventional horizon. The Committee judges that, were the economy to evolve broadly in line with the February Inflation Report projections, monetary policy would need to be tightened somewhat earlier and by a somewhat greater extent over the forecast period than anticipated at the time of the November Report, in order to return inflation sustainably to the target.

In light of these considerations, all members thought that the current policy stance remained appropriate to balance the demands of the MPC’s remit. Any future increases in Bank Rate are expected to be at a gradual pace and to a limited extent. The Committee will monitor closely the incoming evidence on the evolving economic outlook, and stands ready to respond to developments as they unfold to ensure a sustainable return of inflation to the 2% target.


Bank of England | Joana Ferreira |
2/8/2018 12:29:54 PM



Calendar GMT Actual Previous Consensus TEForecast
2017-12-14 12:00 PM BoE Interest Rate Decision 0.5% 0.5% 0.5% 0.5%
2018-02-08 12:00 PM BoE Interest Rate Decision 0.5% 0.5% 0.5% 0.5%
2018-02-08 12:00 PM BoE Quantitative Easing £435B £435B £435B £435B
2018-03-22 12:00 PM BoE Quantitative Easing £435B
2018-03-22 12:00 PM BoE Interest Rate Decision 0.5%
2018-05-10 11:00 AM BoE Quantitative Easing


United Kingdom Money Last Previous Highest Lowest Unit
Interest Rate 0.50 0.50 17.00 0.25 percent [+]
Interbank Rate 0.56 0.56 15.63 0.28 percent [+]
Money Supply M0 82115.00 81892.00 82561.00 3529.00 GBP Million [+]
Money Supply M1 1708160.00 1703479.00 1708160.00 82315.00 GBP Million [+]
Money Supply M2 2347170.00 2349357.00 2349357.00 167436.00 GBP Million [+]
Money Supply M3 2814773.00 2806388.00 2814773.00 263025.00 GBP Million [+]
Central Bank Balance Sheet 575645.00 571820.00 575645.00 76991.00 GBP Million [+]
Banks Balance Sheet 3813163.00 3839502.00 4060273.00 3342179.00 GBP Million [+]
Foreign Exchange Reserves 164278.24 158549.56 164278.24 35190.42 USD Million [+]
Loans to Private Sector 2381400.00 2376447.00 2813118.00 8755.00 GBP Million [+]
Deposit Interest Rate 0.25 0.25 4.25 0.00 percent [+]
Lending Rate 0.75 0.75 4.75 0.50 percent [+]
Private Debt to GDP 230.51 224.96 241.34 153.37 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 February of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
0.50 0.50 17.00 0.25 1971 - 2018 percent Daily




interest rate by Country
Country Last
Turkey 8.00 Jan/18
Mexico 7.50 Feb/18
Russia 7.50 Feb/18
Brazil 6.75 Feb/18
India 6.00 Feb/18
China 4.35 Jan/18
Indonesia 4.25 Feb/18
Australia 1.50 Feb/18
South Korea 1.50 Jan/18
United States 1.50 Jan/18
Canada 1.25 Jan/18
United Kingdom 0.50 Feb/18
Euro Area 0.00 Jan/18
France 0.00 Jan/18
Germany 0.00 Jan/18
Italy 0.00 Jan/18
Netherlands 0.00 Jan/18
Spain 0.00 Jan/18
Japan -0.10 Jan/18
Switzerland -0.75 Jan/18


Related

Latest