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 July 9th as widely expected. The size of the Asset Purchase Programme was left unchanged at £375 billion. Interest Rate in the United Kingdom averaged 7.94 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.

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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, 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 Tuesday, July 28, 2015.

Calendar GMT Reference Actual Previous Consensus Forecast (i)
2015-07-09 12:00 PM 0.5% 0.5% 0.5% 0.5%
2015-07-09 12:00 PM £ 375B £ 375B £ 375B
2015-07-22 09:30 AM
2015-08-06 12:00 PM 0.5% 0.5% 0.5%
2015-08-12 09:30 AM
2015-08-19 09:30 AM


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.

Although the decision was unanimous, a higher number of policymakers believe inflationary pressures may arise sooner than anticipated, bringing inflation rate back to 2 percent target sooner than expected. Yet, for those members, the uncertainty about Greek crisis was determinant to vote for holding rates. The Governor Marc Carney signaled recently the decision about the timing of raising rates will come by the end of the year.

Excerpts from the Minutes of the MPC meeting ending 8 July 2015:
Overall, Committee members agreed that the domestic economy had continued to strengthen over the past year, that the margin of spare capacity had continued to shrink, and that domestic cost pressures had increased. Moreover, recent developments had diminished the risk that low rates of current inflation would feed through into wage settlements, thereby prolonging the period for which inflation would remain below the target. There were, however, differences of view as to how significant the increases in domestic cost pressures had been. For some, they were no more than a part of the increase that would be necessary in order for inflation to rise sufficiently to meet the 2% target after the commodity-related factors that were temporarily depressing it had waned. For others, it appeared as though domestic cost pressures had risen more quickly than expected which, combined with the view that spare capacity in the labour market was close to being exhausted, raised the possibility that inflation might reach the 2% target sooner than anticipated.

Internationally, data releases had generally corroborated the Committee’s view that the second quarter’s data would show a modest bounce back from what had appeared to have been a temporary slowdown in global activity in 2015 Q1. But these data developments had been overshadowed by events in Greece and China and the risks that they appeared to present to the outlook. 

In light of recent developments, all members thought it appropriate to leave the stance of monetary policy unchanged at this meeting. For a number of members, the balance of risks to medium-term inflation relative to the 2% target was becoming more skewed to the upside at the current level of Bank Rate. For these members, the uncertainty caused by recent developments in Greece was a very material factor in their decisions: absent that uncertainty, the decision between holding Bank Rate at its current level versus a small increase was becoming more finely balanced. For most members, even before accounting for the recent increase in uncertainty in the external environment, the current stance of monetary policy remained appropriate to balance the risks of inflation around the target in the medium term. For all members, the policy decision this month was clear cut.

For all members of the Committee, the central message of the guidance that it had given in its February 2014 Inflation Report remained relevant: given the likely persistence of the headwinds weighing on the economy, when Bank rate did begin to rise, it was expected to do so more gradually than in previous cycles. Moreover, the persistence of those headwinds, together with the legacy of the financial crisis, meant that Bank Rate was expected to remain below average historical levels for some time to come. The actual path that Bank Rate would follow over the next few years was uncertain, and would depend on the economic circumstances. The Committee’s guidance on the likely pace and extent of interest rate rises was an expectation, not a promise.

BoE | Joana Taborda | joana.taborda@tradingeconomics.com
7/22/2015 10:33:29 AM


Recent Releases

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

BoE Leaves Monetary Policy Unchanged
The Bank of England left the Bank Rate on hold at a record low 0.5 percent on June 4th as widely expected. The size of the Asset Purchase Programme was left unchanged at £375 billion.
Published on 2015-06-04

BoE Unanimous on Rates
Bank of England policymakers voted unanimously to leave the Bank Rate at a record low 0.5 percent, minutes from MPC meeting held in May showed. The central bank said the dip in inflation is unlikely to last long but showed concerns over recent house price increase.
Published on 2015-05-20


United Kingdom Money Last Previous Highest Lowest Unit
Interest Rate 0.50 0.50 17.00 0.50 percent [+]
Interbank Rate 0.55 0.54 18.11 0.48 percent [+]
Money Supply M0 72299.00 71770.00 72299.00 3528.00 GBP Million [+]
Money Supply M1 1402911.00 1406496.00 1406496.00 82171.00 GBP Million [+]
Money Supply M2 1519394.00 1514647.00 1519394.00 114644.00 GBP Million [+]
Money Supply M3 2360848.00 2366782.00 2423859.00 263027.00 GBP Million [+]
Central Bank Balance Sheet 405132.00 405184.00 414839.00 77638.00 GBP Million [+]
Foreign Exchange Reserves 122936.50 125449.77 125449.77 35190.42 USD Million [+]
Loans to Private Sector 2157555.00 2160808.00 2601972.00 9046.00 GBP Million [+]
Banks Balance Sheet 3386639.00 3379867.00 4060273.00 3343030.00 GBP Million [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.00 Jul/15 2.00 17.50 2.00 percent [+]
Brazil 13.75 Jun/15 13.25 45.00 7.25 percent [+]
Canada 0.50 Jul/15 0.75 16.00 0.25 percent [+]
China 4.85 Jun/15 5.10 10.98 4.85 percent [+]
Euro Area 0.05 Jul/15 0.05 4.75 0.05 percent [+]
India 7.25 Jun/15 7.50 14.50 4.25 percent [+]
Indonesia 7.50 Jul/15 7.50 12.75 5.75 percent [+]
Japan 0.00 Jul/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Jun/15 3.00 9.25 3.00 percent [+]
Russia 11.50 Jun/15 12.50 17.00 5.00 percent [+]
South Korea 1.50 Jul/15 1.50 5.25 1.50 percent [+]
Switzerland -0.75 Jun/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 Jul/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 Jul/15 0.50 17.00 0.50 percent [+]
United States 0.25 Jun/15 0.25 20.00 0.25 percent [+]