The Bank of England cut the Bank Rate by 25 basis points to 3.75%, its lowest level since 2022, as easing inflation and growing signs of economic strain prompted policymakers to act. The move marked the first rate cut since August. Five policymakers voted for the cut while four favored holding rates, a less dovish-than-expected split that prompted traders to scale back expectations for further BOE rate cuts. The MPC stated that future policy easing will be guided by developments in the inflation outlook, adding that the degree of policy restrictiveness has diminished. UK inflation slowed to 3.2% in November, the lowest in 8 months and below the BoE’s forecast of 3.4%. At the same time, GDP contracted for a second month in October, while private-sector wage growth continued to cool. source: Bank of England

The benchmark interest rate in the United Kingdom was last recorded at 3.75 percent. Interest Rate in the United Kingdom averaged 7.03 percent from 1971 until 2025, reaching an all time high of 17.00 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 February of 2026.

The benchmark interest rate in the United Kingdom was last recorded at 3.75 percent. Interest Rate in the United Kingdom is expected to be 3.75 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 3.00 percent in 2027, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2025-12-18 12:00 PM BoE MPC Vote Cut 5/9 4/9 5/9
2025-12-18 12:00 PM BoE MPC Vote Hike 0/9 0/9 0/9
2025-12-18 12:00 PM BoE Interest Rate Decision 3.75% 4% 3.75% 3.75%
2026-02-05 12:00 PM BoE Interest Rate Decision 3.75% 3.75% 3.75%
2026-03-19 12:00 PM BoE Interest Rate Decision 3.5%
2026-04-30 11:00 AM BoE Interest Rate Decision 3.5%


Related Last Previous Unit Reference
Banks Balance Sheet 4674061.00 4668242.00 GBP Million Nov 2025
Central Bank Balance Sheet 795684.00 791741.00 GBP Million Jan 2026
Deposit Interest Rate 3.75 3.75 percent Dec 2025
Foreign Exchange Reserves 222489.00 219613.00 USD Million Nov 2025
Inflation Rate YoY 3.40 3.20 percent Dec 2025
BoE Interest Rate 3.75 4.00 percent Dec 2025
Lending Rate 4.25 4.25 percent Dec 2025
Loans to Private Sector 2828159.00 2781954.00 GBP Million Sep 2025
Money Supply M0 102522.00 102722.00 GBP Million Dec 2025
Money Supply M1 2283790.00 2280006.00 GBP Million Nov 2025
Money Supply M2 3201624.00 3182213.00 GBP Million Nov 2025
Money Supply M3 3745525.00 3720127.00 GBP Million Nov 2025


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
3.75 4.00 17.00 0.10 1971 - 2025 percent Daily

News Stream
Bank of England Cuts Rate As Expected
The Bank of England cut the Bank Rate by 25 basis points to 3.75%, its lowest level since 2022, as easing inflation and growing signs of economic strain prompted policymakers to act. The move marked the first rate cut since August. Five policymakers voted for the cut while four favored holding rates, a less dovish-than-expected split that prompted traders to scale back expectations for further BOE rate cuts. The MPC stated that future policy easing will be guided by developments in the inflation outlook, adding that the degree of policy restrictiveness has diminished. UK inflation slowed to 3.2% in November, the lowest in 8 months and below the BoE’s forecast of 3.4%. At the same time, GDP contracted for a second month in October, while private-sector wage growth continued to cool.
2025-12-18
BoE to Resume Rate Cuts
The Bank of England is widely expected to cut the Bank Rate by 25bps to 3.75% at its December 2025 meeting, marking the first reduction since August after holding rates steady in September and November. Such a move would lower borrowing costs to their weakest level since 2022, amid easing inflation and mounting signs of economic strain. UK annual inflation slowed to 3.2% in November, the lowest reading in eight months and below the BoE’s forecast of 3.4%. At the same time, GDP contracted for a second consecutive month in October, while private-sector wage growth continued to cool. Investors will closely watch the vote split and guidance from the nine-member Monetary Policy Committee for signals on the policy outlook in 2026. Markets increasingly believe the central bank is nearing the end of its easing cycle, with only one additional rate cut fully priced in for next year.
2025-12-18
BoE Hold Rates at 4%
The Bank of England’s MPC voted 5–4 to keep the Bank Rate at 4% at its 5 November meeting, in line with expectations. Four members preferred a 25 bps cut to 3.75%, reflecting growing support for easing. Policymakers noted that CPI inflation has peaked and underlying disinflation is progressing, helped by a still-restrictive policy stance, softer pay growth, and easing services inflation. A subdued economy and rising labour-market slack are also reinforcing disinflation. The MPC said risks around achieving the 2% target are now more evenly balanced: inflation persistence has become less concerning, while downside risks from weak demand have grown. Still, members stressed the need for more evidence on both fronts. As previous rate cuts have reduced policy restrictiveness, future reductions will depend on incoming data. If disinflation continues as expected, the Bank Rate is likely to move lower gradually.
2025-11-06