United Kingdom Interest Rate 1971-2015 | Data | Chart | Calendar

The Bank of England left the Bank Rate on hold at a record low 0.5 percent on September 10th as widely expected. The size of the Asset Purchase Programme was left unchanged at £375 billion. Interest Rate in the United Kingdom averaged 7.92 percent from 1971 until 2015, 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
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Actual Previous Highest Lowest Dates Unit Frequency
0.50 0.50 17.00 0.50 1971 - 2015 percent Daily
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. Content for - United Kingdom Interest Rate - was last refreshed on Tuesday, October 6, 2015.

Calendar GMT Reference Actual Previous Consensus Forecast (i)
2015-09-10 12:00 PM 0.5% 0.5% 0.5% 0.5%
2015-09-10 12:00 PM
2015-09-29 08:40 PM
2015-10-08 12:00 PM £375B
2015-10-08 12:00 PM 1/9 1/9
2015-10-08 12:00 PM

BoE Leaves Rates on Hold

Bank of England policymakers voted by a majority of 8-1 to maintain the Bank Rate at 0.5 percent and unanimously to leave the stock of purchased assets at £375 billion.

Excerpts from Monetary policy summary, September 2015:

Inflation is below the target and the Committee’s best collective judgement is that there remain at least some underutilised resources in the economy.  In that light, the Committee intends to set monetary policy in order to ensure that growth is sufficient to absorb the remaining economic slack so as to return inflation to the target within two years.

The Committee set out its most recent detailed assessment of the economic outlook in the August Inflation Report. The aim of returning inflation to the target within two years was thought likely to be achieved conditional upon Bank Rate following the gently rising path implied by the market yields prevailing at the time. Private domestic demand growth was forecast to be robust enough to eliminate the margin of spare capacity over the next year or so, despite the continuing fiscal consolidation and modest global growth. And that, in turn, was expected to result in the increase in domestic costs needed to return inflation to the target in the medium term, as the temporary negative impact on inflation of lower energy, food and import prices waned. In the third year of the projection, inflation was forecast to move slightly above the target as sustained growth led to a margin of excess demand.

The Committee noted in the August Report that the risks to the growth outlook were skewed moderately to the downside, in part reflecting risks to activity in the euro area and China. Developments since then have increased the risks to prospects in China, as well as to other emerging economies. This led to markedly higher volatility in commodity prices and global financial markets. 

While these developments have the potential to add to the global headwinds to UK growth and inflation, they must be weighed against the prospects for a continued healthy domestic expansion. Domestic momentum is being underpinned by robust real income growth, supportive credit conditions, and elevated business and consumer confidence. The rate of unemployment has fallen by over 2 percentage points since the middle of 2013, although that decline has levelled off more recently. Global developments do not as yet appear sufficient to alter materially the central outlook described in the August Report, but the greater downside risks to the global environment merit close monitoring for any impact on domestic economic activity.

There remains a range of views among MPC members about the balance of risks to inflation relative to the target.  At the Committee’s meeting ending on 9 September the majority of members judged that the current stance of monetary policy remained appropriate. Ian McCafferty preferred to increase Bank Rate by 25 basis points, given his view that building domestic cost pressures would otherwise be likely to lead to inflation overshooting the target in the medium term.

All members agree that, given the likely persistence of the headwinds weighing on the economy, when Bank Rate does begin to rise, it is expected to do so more gradually and to a lower level than in recent cycles. This guidance is an expectation, not a promise. The actual path that Bank Rate will follow over the next few years will depend on the economic circumstances.

BoE | Joana Taborda | joana.taborda@tradingeconomics.com
9/10/2015 12:18:33 PM

Recent Releases

The Bank of England Keeps Monetary Policy Unchanged
The Monetary Policy Committee, voted by a majority of 8-1 to maintain Bank Rate at 0.5% and unanimously to maintain the stock of purchased assets at £375 billion. The Bank has also raised its growth forecasts for this year and cut its inflation projection.
Published on 2015-08-06

BoE Unanimous on Rates but a Hike May Come Soon
Bank of England policymakers voted unanimously to leave the Bank Rate at a record low 0.5 percent in July but some members showed concerns over upside risks to the inflation, signaling a rate hike may occur sooner than expected, minutes from last MPC meeting showed.
Published on 2015-07-22

BoE Likely to Decide When To Raise Rates by the End of the Year
A decision about the timing of raising rates will come by the end of the year and will be gradual, BoE Governor Mark Carney signaled during the speech delivered at the Lincoln Cathedral.
Published on 2015-07-17

BoE Leaves Rates Steady
The Bank of England left the Bank Rate on hold at a record low 0.5 percent on July 9th as widely expected. The size of the Asset Purchase Programme was left unchanged at £375 billion.
Published on 2015-07-09

United Kingdom Money Last Previous Highest Lowest Unit
Interest Rate 0.50 0.50 17.00 0.50 percent [+]
Interbank Rate 0.57 0.57 18.11 0.48 percent [+]
Money Supply M0 73111.00 72612.00 73111.00 3528.00 GBP Million [+]
Money Supply M1 1438644.00 1428920.00 1438644.00 82171.00 GBP Million [+]
Money Supply M2 1549988.00 1544029.00 1549988.00 114644.00 GBP Million [+]
Money Supply M3 2378755.00 2370803.00 2423859.00 263027.00 GBP Million [+]
Central Bank Balance Sheet 405132.00 404299.00 414839.00 77638.00 GBP Million [+]
Foreign Exchange Reserves 128022.05 125620.10 128022.05 35190.42 USD Million [+]
Loans to Private Sector 2157555.00 2160808.00 2601972.00 9046.00 GBP Million [+]
Banks Balance Sheet 3394486.00 3402833.00 4060273.00 3343030.00 GBP Million [+]

Interest Rate Reference Previous Highest Lowest Unit
Australia 2.00 Oct/15 2.00 17.50 2.00 percent [+]
Brazil 14.25 Sep/15 14.25 45.00 7.25 percent [+]
Canada 0.50 Sep/15 0.50 16.00 0.25 percent [+]
China 4.60 Aug/15 4.85 10.98 4.60 percent [+]
Euro Area 0.05 Sep/15 0.05 4.75 0.05 percent [+]
India 6.75 Sep/15 7.25 14.50 4.25 percent [+]
Indonesia 7.50 Sep/15 7.50 12.75 5.75 percent [+]
Japan 0.00 Sep/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Sep/15 3.00 9.25 3.00 percent [+]
Russia 11.00 Sep/15 11.00 17.00 5.00 percent [+]
South Korea 1.50 Sep/15 1.50 5.25 1.50 percent [+]
Switzerland -0.75 Sep/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 Sep/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 Sep/15 0.50 17.00 0.50 percent [+]
United States 0.25 Sep/15 0.25 20.00 0.25 percent [+]