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

The Bank of England’s Monetary Policy Committee at its January 8th, 2015 meeting voted to maintain Bank Rate at 0.5%. The Committee also voted to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion. Interest Rate in the United Kingdom averaged 8.02 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.

      Forecast    
United Kingdom Interest Rate


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 Monday, January 26, 2015.


BoE Voted Unanimously to Leave Rates on Hold


Minutes from MPC’s meeting held in January showed policymakers voted unanimously for the first time since July to keep rates at record low as two members dropped their call for higher rates due to low inflation. A rate hike may occur later than expected as policymakers believe there's a roughly even chance of deflation in the first half of 2015.

Excerpts from the BoE Minutes of the Monetary Policy Committee Meeting held on 7 and 8 January 2015:

The fall in CPI inflation to 0.5% in December was in line with Bank staff’s expectations immediately before the data release, but 0.5 percentage points lower than expected at the time of the November Inflation Report. Although the full details were not yet available, the fall in CPI inflation on the month was likely to have largely reflected lower fuel prices and utility price increases in December 2013 dropping out of the annual comparison. CPI inflation was expected by Bank staff to reach a trough of around zero in March, as lower oil prices fed through to petrol prices, with a roughly even chance that it would temporarily dip below zero at some point in the first half of 2015.

There had been a number of significant developments since the November Inflation Report. Oil prices had fallen further: the spot price of Brent crude oil had dropped to $50 per barrel, down $20 on the month and $32 lower than at the time of the November Inflation Report. CPI inflation had fallen to 0.5% in December, 0.5 percentage points lower than had been expected in November, and was now expected by Bank staff to reach a trough of close to zero in March, as lower oil prices fed through to petrol prices. There was, therefore, a roughly even chance that CPI inflation would temporarily dip below zero at some time during the first half of 2015. Inflation had also fallen abroad and was negative in the euro area. Market interest rates had declined as the expected pace and extent of future UK monetary policy tightening had been scaled back. The one-year sterling rate one year ahead had fallen by close to 20 basis points and was 40 basis points lower than at the time of the November Inflation Report. By comparison, there had been relatively little news on activity. Growth remained solid in the United Kingdom and United States, but subdued in the euro area and was slowing modestly in the emerging economies. 

In the view of all members, the outlook justified maintaining both the current level of Bank Rate and the stock of asset purchases financed by the issuance of central bank reserves. It was possible that the risks to CPI inflation in the medium term might have, if anything, shifted to the upside, but all members were also alert to the downside risk of current low inflation becoming entrenched. Monetary policy could and would be adjusted at the appropriate time to ensure that CPI inflation was on track to meet the 2% target in the medium term.

For the two members who had voted in the previous month for an increase in Bank Rate, the decision this month was finely balanced. They believed that the sharp fall in inflation to below the 2% target was probably driven largely by temporary factors and was unlikely materially to affect the behaviour of households and businesses in such a way that it became self-perpetuating. They also noted the most recent evidence that wage growth was more buoyant than they had expected. Nevertheless they noted the risk that low inflation might persist for longer than the temporary factors implied and concluded that this risk would be increased by an increase in Bank Rate at the current juncture.

BoE | Joana Taborda | joana.taborda@tradingeconomics.com
1/21/2015 12:25:23 PM


Recent Releases

BoE Holds Rates in January
The Bank of England left the Bank Rate steady at 0.5 percent at its January 8th meeting, as widely expected. The size of the Asset Purchase Programme was left unchanged at £375 billion. Published on 2015-01-08

Bank of England Keeps Monetary Policy Unchanged
The Bank of England’s Monetary Policy Committee, as expected, maintained Bank Rate at 0.5% and the stock of purchased assets financed by the issuance of central bank reserves at £375 billion. Published on 2014-12-04


Calendar GMT Event Actual Previous Consensus Forecast (i)
2015-01-08 12:00 PM
BoE Interest Rate Decision 
0.5% 0.5% 0.5% 0.5%
2015-01-14 02:15 PM
BOE's Governor Carney Speech 
2015-01-21 09:30 AM
MPC Meeting Minutes 
2015-02-05 12:00 PM
BoE Interest Rate Decision 
0.5% 0.5%
2015-02-11 10:30 AM
BoE Inflation Report 
2015-02-19 09:30 AM
MPC Meeting Minutes 


United Kingdom Money Last Previous Highest Lowest Unit
Interest Rate 0.50 0.50 17.00 0.50 percent [+]
Interbank Rate 0.53 0.53 18.11 0.48 percent [+]
Money Supply M0 70283.00 69903.00 70283.00 3528.00 GBP Million [+]
Money Supply M1 1353973.00 1346271.00 1353973.00 82171.00 GBP Million [+]
Money Supply M2 1489048.00 1485783.00 1489048.00 114644.00 GBP Million [+]
Money Supply M3 2357931.00 2349597.00 2423859.00 263027.00 GBP Million [+]
Central Bank Balance Sheet 405132.00 405184.00 414839.00 77638.00 GBP Million [+]
Foreign Exchange Reserves 107215.99 111156.71 111781.49 35190.42 USD Million [+]
Loans to Private Sector 2178683.00 2175067.00 2601972.00 9046.00 GBP Million [+]
Banks Balance Sheet 3364720.00 3343706.00 4060273.00 3343030.00 GBP Million [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.50 Dec/14 2.50 17.50 2.50 percent [+]
Brazil 12.25 Jan/15 11.75 45.00 7.25 percent [+]
Canada 0.75 Jan/15 1.00 16.00 0.25 percent [+]
China 5.60 Dec/14 5.60 10.98 5.31 percent [+]
Euro Area 0.05 Jan/15 0.05 4.75 0.05 percent [+]
France 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Jan/15 0.05 4.75 0.05 percent [+]
India 7.75 Jan/15 8.00 14.50 4.25 percent [+]
Indonesia 7.75 Jan/15 7.75 12.75 5.75 percent [+]
Italy 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Japan 0.00 Jan/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Dec/14 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Russia 17.00 Dec/14 9.50 17.00 5.00 percent [+]
South Korea 2.00 Jan/15 2.00 5.25 2.00 percent [+]
Spain 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Jan/15 -0.25 3.50 -0.75 percent [+]
Turkey 7.75 Jan/15 8.25 500.00 4.50 percent [+]
United Kingdom 0.50 Aug/15 0.50 17.00 0.50 percent [+]
United States 0.25 Dec/14 0.25 20.00 0.25 percent [+]