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

The Bank of England Monetary Policy Committee kept the Bank Rate at a record low of 0.25 percent and left the stock of purchased assets at £435 billion on March 16th, 2017 as widely expected. Interest Rate in the United Kingdom averaged 8.32 percent from 1971 until 2017, reaching an all time high of 435 percent in March of 2017 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)
2017-02-02 12:00 PM BoE Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2017-03-16 12:00 PM BoE Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2017-03-16 12:00 PM BoE Quantitative Easing £435B £435B £435B £435B
2017-04-04 08:30 AM BoE FPC Minutes
2017-05-11 11:00 AM MPC Meeting Minutes
2017-05-11 11:00 AM BoE Interest Rate Decision 0.25% 0.25%

UK Leaves Key Rate Steady At 0.25%

The Bank of England Monetary Policy Committee kept the Bank Rate at a record low of 0.25 percent and left the stock of purchased assets at £435 billion on March 16th, 2017, in line with forecasts. Policymakers expect a slowdown in aggregate demand during this year and a rise in inflation to above the 2 percent target in the next few months.

Excerpts from the Monetary Policy Summary:

As the MPC had observed at the time of the UK’s referendum on EU membership, the appropriate path for monetary policy depends on the evolution of demand, potential supply, the exchange rate, and therefore inflation. The Committee expects a slowdown in aggregate demand over the course of this year, as household demand growth declines in reaction to lower real income growth. Official estimates of retail sales have weakened notably, consistent with this expectation, although other indicators of consumer demand such as consumer confidence have been steadier. Measures of overall activity growth have been resilient, with official estimates indicating a fairly steady pace of expansion around historical average rates and business surveys suggesting little change in the near term. It is possible that slowing consumption may be offset to some degree by other components of demand, such as a more supportive net trade position following last year’s fall in sterling and the recent pickup in global momentum.

CPI inflation increased to 1.8% in January, and the MPC expects it to rise above the 2% target over the next few months, before peaking at around 2¾% in early 2018 and drifting gradually back down towards the target thereafter. The projected overshoot entirely reflects the expected effects of the drop in sterling. Pay growth has remained subdued, while measures of inflation expectations remain at levels broadly consistent with the achievement of the inflation target.

Monetary policy cannot prevent either the real adjustment that is necessary as the UK moves towards its new international trading arrangements or the weaker real income growth that is likely to accompany it over the next few years. Attempting to offset fully the effect of weaker sterling on inflation would be achievable only at the cost of higher unemployment and, in all likelihood, even weaker income growth. For this reason, the MPC’s remit specifies that, in such exceptional circumstances, the Committee must balance the trade-off between the speed with which it intends to return inflation to the target and the support that monetary policy provides to jobs and activity. At its March meeting, the MPC continued to judge that it remained appropriate to seek to return inflation to the target over a somewhat longer period than usual. Eight members thought that the current stance of monetary policy 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 that 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. The projections described in the February Inflation Report depend in good part on three main judgements: that the lower level of sterling continues to boost consumer prices broadly as expected, and without adverse consequences for expectations of inflation further ahead;  that regular pay growth does indeed remain modest, consistent with the Committee’s updated assessment of the remaining degree of slack in the labour market; and that the hitherto resilient rates of household spending growth slow as real income gains weaken, without a sufficient offset by other components of demand. 

BoE | Joana Taborda | joana.taborda@tradingeconomics.com
3/16/2017 12:21:25 PM

United Kingdom Money Last Previous Highest Lowest Unit
Interest Rate 0.25 0.25 17.00 0.25 percent [+]
Interbank Rate 0.34 0.34 15.63 0.34 percent [+]
Money Supply M0 81626.00 81295.00 81626.00 3529.00 GBP Million [+]
Money Supply M1 1618416.00 1625847.00 1625847.00 82307.00 GBP Million [+]
Money Supply M2 1631373.00 1630801.00 1631373.00 114632.00 GBP Million [+]
Money Supply M3 2658267.00 2636751.00 2658267.00 262939.00 GBP Million [+]
Central Bank Balance Sheet 405132.00 404299.00 414839.00 77638.00 GBP Million [+]
Banks Balance Sheet 3631958.00 3573670.00 4060273.00 3342179.00 GBP Million [+]
Foreign Exchange Reserves 142259.32 142571.65 149048.33 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 March of 2017.

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

Argentina 24.75 Mar/17
Ghana 23.50 Mar/17
Mozambique 23.25 Feb/17
Gambia 23.00 Feb/17
Malawi 22.00 Mar/17
Venezuela 20.76 Jan/17
Haiti 20.00 Feb/17
Iran 18.00 Dec/16
Angola 16.00 Feb/17
Afghanistan 15.00 Feb/17
Azerbaijan 15.00 Feb/17
Belarus 15.00 Mar/17
Yemen 15.00 Feb/17
Egypt 14.75 Feb/17
Sudan 14.20 Feb/17
Congo 14.00 Feb/17
Mongolia 14.00 Feb/17
Nigeria 14.00 Mar/17
Ukraine 14.00 Mar/17
Zambia 14.00 Feb/17
Liberia 13.70 Feb/17
Guinea 12.50 Feb/17
Suriname 12.50 Dec/15
Tajikistan 12.50 Feb/17
Seychelles 12.38 Jan/17
Brazil 12.25 Mar/17
Tanzania 12.00 Mar/17
Djibouti 11.60 Dec/15
Uganda 11.50 Feb/17
Kazakhstan 11.00 Feb/17
Sierra Leone 11.00 Feb/17
Zimbabwe 10.68 Dec/16
Kenya 10.00 Mar/17
Lebanon 10.00 Feb/17
Myanmar 10.00 Feb/17
Sao Tome and Principe 10.00 Feb/17
Russia 9.75 Mar/17
Uruguay 9.25 Feb/17
Mauritania 9.00 Feb/17
Moldova 9.00 Feb/17
Uzbekistan 9.00 Feb/17
Madagascar 8.30 Jan/17
Ecuador 8.25 Feb/17
Turkey 8.00 Mar/17
Cape Verde 7.50 Jan/17
Sri Lanka 7.25 Mar/17
Swaziland 7.25 Feb/17
Colombia 7.00 Mar/17
Maldives 7.00 Feb/17
Namibia 7.00 Feb/17
Nepal 7.00 Feb/17
South Africa 7.00 Feb/17
Burundi 6.95 Nov/16
Bangladesh 6.75 Feb/17
Georgia 6.75 Mar/17
Lesotho 6.64 Sep/16
Vietnam 6.50 Feb/17
India 6.25 Feb/17
Mexico 6.25 Feb/17
Papua New Guinea 6.25 Feb/17
Rwanda 6.25 Jan/17
Armenia 6.00 Mar/17
Bhutan 6.00 Feb/17
Pakistan 5.75 Feb/17
Botswana 5.50 Feb/17
Brunei 5.50 Feb/17
Dominican Republic 5.50 Feb/17
Honduras 5.50 Mar/17
Paraguay 5.50 Mar/17
Ethiopia 5.00 Feb/17
Guyana 5.00 Jan/17
Iceland 5.00 Mar/17
Jamaica 5.00 Feb/17
Kyrgyzstan 5.00 Mar/17
Qatar 5.00 Mar/17
Bosnia and Herzegovina 4.91 Jan/17
Indonesia 4.75 Mar/17
Trinidad and Tobago 4.75 Jan/17
El Salvador 4.56 Dec/16
Benin 4.50 Feb/17
Burkina Faso 4.50 Feb/17
Guinea Bissau 4.50 Feb/17
Ivory Coast 4.50 Feb/17
Mali 4.50 Feb/17
Niger 4.50 Feb/17
Senegal 4.50 Feb/17
Togo 4.50 Feb/17
China 4.35 Feb/17
Laos 4.25 Feb/17
Peru 4.25 Mar/17
Tunisia 4.25 Feb/17
Bahamas 4.00 Feb/17
Iraq 4.00 Feb/17
Jordan 4.00 Feb/17
Mauritius 4.00 Feb/17
Serbia 4.00 Mar/17
Algeria 3.50 Feb/17
Macedonia 3.50 Jan/17
Barbados 3.46 Feb/17
Chile 3.00 Mar/17
Guatemala 3.00 Feb/17
Libya 3.00 Feb/17
Malaysia 3.00 Mar/17
Philippines 3.00 Mar/17
Kuwait 2.75 Mar/17
Belize 2.50 Feb/17
Croatia 2.50 Jan/17
Cameroon 2.45 Feb/17
Central African Republic 2.45 Feb/17
Chad 2.45 Feb/17
Equatorial Guinea 2.45 Jan/17
Gabon 2.45 Feb/17
Republic of the Congo 2.45 Feb/17
Cuba 2.25 Feb/17
Morocco 2.25 Mar/17
Saudi Arabia 2.00 Feb/17
Bolivia 1.88 Jan/17
Costa Rica 1.75 Feb/17
New Zealand 1.75 Mar/17
Romania 1.75 Feb/17
United Arab Emirates 1.75 Mar/17
Cambodia 1.55 Jan/17
Australia 1.50 Mar/17
Poland 1.50 Mar/17
Thailand 1.50 Feb/17
Taiwan 1.38 Mar/17
Albania 1.25 Feb/17
Bahrain 1.25 Mar/17
Hong Kong 1.25 Mar/17
Macau 1.25 Mar/17
South Korea 1.25 Feb/17
Oman 1.24 Feb/17
Comoros 1.15 Nov/16
United States 1.00 Mar/17
Hungary 0.90 Mar/17
Panama 0.58 Dec/16
Canada 0.50 Mar/17
Fiji 0.50 Feb/17
Norway 0.50 Mar/17
New Caledonia 0.25 Feb/17
United Kingdom 0.25 Mar/17
Singapore 0.22 Feb/17
Israel 0.10 Feb/17
Czech Republic 0.05 Feb/17
Austria 0.00 Mar/17
Belgium 0.00 Mar/17
Bulgaria 0.00 Mar/17
Cyprus 0.00 Mar/17
Estonia 0.00 Mar/17
Euro Area 0.00 Mar/17
Finland 0.00 Mar/17
France 0.00 Mar/17
Germany 0.00 Mar/17
Greece 0.00 Mar/17
Ireland 0.00 Mar/17
Italy 0.00 Mar/17
Latvia 0.00 Mar/17
Lithuania 0.00 Mar/17
Luxembourg 0.00 Mar/17
Malta 0.00 Mar/17
Netherlands 0.00 Mar/17
Portugal 0.00 Mar/17
Slovakia 0.00 Mar/17
Slovenia 0.00 Mar/17
Spain 0.00 Mar/17
Japan -0.10 Mar/17
Sweden -0.50 Feb/17
Denmark -0.65 Feb/17
Switzerland -0.75 Mar/17