United Kingdom Interest Rate 1971-2014 | Data | Chart | Calendar

The benchmark interest rate in the United Kingdom was last recorded at 0.50 percent. Interest Rate in the United Kingdom averaged 8.05 Percent from 1971 until 2014, reaching an all time high of 17 Percent in November of 1979 and a record low of 0.50 Percent in March of 2009. Interest Rate in the United Kingdom is reported by the Bank of England.

   
 
 

United Kingdom Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
0.50 0.50 17.00 0.50 1971 - 2014 Percent Monthly
In the United Kingdom, the Bank of England has operational independence. Decisions on interest rates are taken 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. Content for - United Kingdom Interest Rate - was last refreshed on Saturday, September 20, 2014.


BoE May Raise Rates Sooner Than Expected


In a speech during the 146th annual Trades Union Congress, the Bank of England Governor Mark Carney signaled the benchmark interest rate may start rising by the spring of 2015, as the economic recovery has exceeded all expectations.

Excerpts from the Speech given by Governor Mark Carney at the 146th Annual Trades Union Congress, Liverpool:

The recovery has exceeded all expectations. It has momentum. There has been a sustained and sharp fall in the unemployment rate to 6.4%. Over 800,000 jobs have been created in the past year alone. We expect robust growth of 3½% this year and 3% in 2015. 

With many of the conditions for the economy to normalise now met, the point at which interest rates also begin to normalise is getting closer. In recent months the judgement about precisely when to raise Bank Rate has become more balanced.

Moreover, the precise timing of the first rate rise is less important than our expectation that, when rates do begin to rise, those increases are likely to be gradual and limited. Rates will go up only as far and as fast as is consistent with price stability as part of a durable expansion, with the maximum sustainable level of employment. 

Actual wage growth, at just 0.6% since a year ago excluding bonuses, is currently very weak. However, there are some leading indicators that point to a modest pick up over coming quarters. 

In other words, there is still slack in the labour market that must be used up, and the recent revisions to the profile of UK output up to 2012 seem unlikely to change that assessment materially. That slack is wasteful. And if it were to remain, inflation would remain below the 2% target. 

The MPC’s current best collective judgement is that, while it has narrowed rapidly, this slack is broadly in the region of 1% of GDP. As this margin of slack continues to narrow, we expect wages to pick up slightly faster than productivity, and unit labour cost growth should increase, consistent with meeting the inflation target. 

However, the MPC expects it will take the better part of three years for this to happen.

With inflation at 1.6%, continuing downward pressure from the appreciation of sterling, and with slack remaining, the current inflation environment is benign. But it will not remain benign if we do not increase interest rates prudently as the expansion progresses. Our latest forecasts show that, if interest rates were to follow the path expected by markets – that is, beginning to increase by the spring and thereafter rising very gradually – inflation would settle at around 2% by the end of the forecast and a further 1.2 million jobs would have been created.

BoE | Joana Taborda | joana.taborda@tradingeconomics.com
9/9/2014 1:08:39 PM


Recent Releases

BoE Leaves Monetary Policy Unchanged
At its September meeting, the Bank of England decided to leave the bank rate at 0.5 percent and the stock of purchased assets financed by the issuance of central bank reserves at £375 billion. Published on 2014-09-04

Bank of England Keeps Bank Rate at 0.5%
The Bank of England’s Monetary Policy Committee voted to maintain its benchmark interest rate at 0.5% at its meeting on August 7th. The Committee also pledged to keep the stock of purchased assets financed by the issuance of central bank reserves at £375 billion. Published on 2014-08-07


Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-06-05 12:00 PM United Kingdom
BoE Interest Rate Decision
0.5% 0.5% 0.5% 0.5%
2014-06-18 09:30 AM United Kingdom
MPC Meeting Minutes
2014-07-10 12:00 PM United Kingdom
BoE Interest Rate Decision
0.5% 0.5% 0.5% 0.5%
2014-07-23 09:30 AM United Kingdom
MPC Meeting Minutes
2014-08-07 12:00 PM United Kingdom
BoE Interest Rate Decision
0.5% 0.5% 0.5% 0.5%


Money Last Previous Highest Lowest Unit
Interest Rate 0.50 0.50 17.00 0.50 Percent [+]
Interbank Rate 0.54 0.54 18.11 0.48 Percent [+]
Money Supply M0 68093.00 67939.00 68093.00 3528.00 GBP Million [+]
Money Supply M1 1323864.00 1321955.00 1323864.00 82171.00 GBP Million [+]
Money Supply M2 1459354.00 1453458.00 1459354.00 114644.00 GBP Million [+]
Money Supply M3 2352032.00 2358966.00 2423859.00 263027.00 GBP Million [+]
Central Bank Balance Sheet 404298.50 405184.00 414839.00 77638.00 GBP Million [+]
Foreign Exchange Reserves 110747.66 111781.49 111781.49 35190.42 USD Million [+]
Loans to Private Sector 2175067.00 2184729.00 2601972.00 9046.00 GBP Million [+]
Banks Balance Sheet 3342804.00 3415742.00 4060273.00 3342804.00 GBP Million [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.50 Sep/14 2.50 17.50 2.50 Percent [+]
Brazil 11.00 Sep/14 11.00 45.00 7.25 Percent [+]
Canada 1.00 Sep/14 1.00 16.00 0.25 Percent [+]
China 6.00 Aug/14 6.00 10.98 5.31 Percent [+]
Euro Area 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
France 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Germany 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
India 8.00 Aug/14 8.00 14.50 4.25 Percent [+]
Indonesia 7.50 Sep/14 7.50 12.75 5.75 Percent [+]
Italy 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Japan 0.00 Sep/14 0.00 9.00 0.00 Percent [+]
Mexico 3.00 Sep/14 3.00 9.25 3.00 Percent [+]
Netherlands 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Russia 8.00 Sep/14 8.00 10.50 5.00 Percent [+]
South Korea 2.25 Sep/14 2.25 5.25 2.00 Percent [+]
Spain 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Switzerland 0.00 Sep/14 0.00 3.50 0.00 Percent [+]
Turkey 8.25 Aug/14 8.25 500.00 4.50 Percent [+]
United Kingdom 0.50 Sep/14 0.50 17.00 0.50 Percent [+]
United States 0.25 Sep/14 0.25 20.00 0.25 Percent [+]





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