United Kingdom Interest Rate  1971-2017 | Data | Chart | Calendar

The Bank of England Monetary Policy Committee voted by a majority of 7-1 to maintain Bank Rate at a record low of 0.25 percent on May 11th, 2017, as widely expected, saying the continuing suitability of the current policy stance depends on the trade-off between above-target inflation and slack in the economy, as well as the prospects for inflation to return sustainably to target. Also, policymakers agreed that, if the economy grows as expected, then monetary policy could need to be tightened by a greater extent over the next three years. The MPC was unanimous in its decision to keep the stock of UK government bond purchases unchanged at £435 billion. Interest Rate in the United Kingdom averaged 7.73 percent from 1971 until 2017, 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
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Calendar GMT Reference Actual Previous Consensus Forecast (i)
2017-03-16 12:00 PM BoE Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2017-05-11 11:00 AM BoE Quantitative Easing £435B £435B £435B £435B
2017-05-11 11:00 AM BoE Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2017-06-15 11:00 AM BoE Interest Rate Decision 0.25%
2017-06-15 11:00 AM MPC Meeting Minutes
2017-06-15 11:00 AM BoE Quantitative Easing £435B%




UK Leaves Monetary Policy Unchanged


The Bank of England Monetary Policy Committee voted by a majority of 7-1 to maintain Bank Rate at a record low of 0.25 percent on May 11th, 2017, as widely expected, saying the continuing suitability of the current policy stance depends on the trade-off between above-target inflation and slack in the economy, as well as the prospects for inflation to return sustainably to target. The MPC was unanimous in its decision to keep the stock of UK government bond purchases unchanged at £435 billion.

Excerpts from the Monetary Policy Summary:

Aggregate demand slowed markedly in 2017 Q1, and the MPC’s central projection contained in the May Inflation Report is now for quarterly growth to remain around current rates, and close to trend. The slowdown appears to be concentrated in consumer-facing sectors, partly reflecting the impact of sterling’s past depreciation on household income and spending. The Committee judges that consumption growth will be slower in the near term than previously anticipated before recovering in the latter part of the forecast period as real income picks up.  

In the MPC’s central forecast, weaker consumption this year is largely balanced by rising net trade and investment.  The outlook for global activity continues to improve. Business surveys and Bank Agents’ reports imply that business investment growth is likely to be higher in 2017 than previously projected.  The stronger global outlook and the level of sterling are providing incentives for many exporters to renew and increase capacity.

CPI inflation has risen above the MPC’s 2% target as the depreciation of sterling has begun to feed through to consumer prices. This impact has been offset to some extent by continued subdued growth in domestic costs. In particular, wage growth has been notably weaker than expected. The MPC expects inflation to rise further above the target in the coming months, peaking a little below 3% in the fourth quarter.

At its May meeting, seven members thought that the current monetary policy setting remained appropriate to balance the demands of the Committee’s remit. Kristin Forbes considered it appropriate to increase Bank Rate by 25 basis points.

As the Committee has previously noted, there are limits to the extent to which above-target inflation can be tolerated. The continuing suitability of the current policy stance depends on the trade-off between above-target inflation and slack in the economy, as well as the prospects for inflation to return sustainably to target. These projections depend importantly on three main judgements: that the lower level of sterling continues to boost consumer prices broadly as projected, and without adverse consequences for inflation expectations further ahead; that regular pay growth remains modest in the near term but picks up significantly over the forecast period; and that more subdued household spending growth is largely balanced by a pickup in other components of demand. 

In judging the appropriate policy stance, the Committee will be monitoring closely the incoming evidence regarding these and other factors. Monetary policy can respond in either direction to changes to the economic outlook as they unfold to ensure a sustainable return of inflation to the 2% target. On the whole, the Committee judges that, if the economy follows a path broadly consistent with the May central projection, then monetary policy could need to be tightened by a somewhat greater extent over the forecast period than the very gently rising path implied by the market yield curve underlying the May projections.

BoE | Joana Ferreira | joana.ferreira@tradingeconomics.com
5/11/2017 11:49:22 AM



United Kingdom Money Last Previous Highest Lowest Unit
Interest Rate 0.25 0.25 17.00 0.25 percent [+]
Interbank Rate 0.30 0.30 15.63 0.30 percent [+]
Money Supply M0 81842.00 81986.00 81986.00 3529.00 GBP Million [+]
Money Supply M1 1641919.00 1624464.00 1641919.00 82307.00 GBP Million [+]
Money Supply M2 1643309.00 1630070.00 1643309.00 114632.00 GBP Million [+]
Money Supply M3 2703241.00 2680733.00 2703241.00 262939.00 GBP Million [+]
Banks Balance Sheet 3754432.00 3667784.00 4060273.00 3342179.00 GBP Million [+]
Central Bank Balance Sheet 405132.00 404299.00 414839.00 77638.00 GBP Million [+]
Foreign Exchange Reserves 152448.49 143491.70 152448.49 35190.42 USD Million [+]
Loans to Private Sector 2257725.00 2243682.00 2813062.00 8755.00 GBP Million [+]
Deposit Interest Rate 0.00 0.00 4.25 0.00 percent [+]
Private Debt to GDP 229.50 238.34 241.34 153.37 percent [+]


United Kingdom Interest Rate Notes

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 May of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
0.25 0.25 17.00 0.25 1971 - 2017 percent Daily



interest rate by Country

Last
Brazil 11.25 Apr/17
Russia 9.25 Apr/17
Turkey 8.00 Apr/17
Mexico 6.75 May/17
India 6.25 Apr/17
Indonesia 4.75 May/17
China 4.35 Apr/17
Australia 1.50 May/17
South Korea 1.25 May/17
United States 1.00 May/17
Canada 0.50 May/17
United Kingdom 0.25 May/17
Euro Area 0.00 May/17
France 0.00 May/17
Germany 0.00 May/17
Italy 0.00 May/17
Netherlands 0.00 May/17
Spain 0.00 May/17
Japan -0.10 Apr/17
Switzerland -0.75 May/17