The Bank of England voted unanimously to maintain Bank Rate at a record low of 0.1% and the size of its bond-buying program at £875 billion during its December meeting, as policymakers took a wait-and-see approach amid uncertainty surrounding a post-Brexit trade deal and concerns over the coronavirus situation. Still, the central bank noted that the successful trialing of some Covid vaccines and initial plans to roll them out widely over the first half of next year will likely reduce the downside risks to the economic outlook. Looking ahead, officials pledged to take whatever additional action is necessary to achieve the 2% inflation target, in a way that helps to sustain growth and employment. CPI inflation is expected to rise quite sharply towards the target in the spring, as the VAT cut comes to an end and the large fall in energy prices earlier this year drops out of the annual comparison. source: Bank of England

Interest Rate in the United Kingdom averaged 7.32 percent from 1971 until 2020, reaching an all time high of 17 percent in November of 1979 and a record low of 0.10 percent in March of 2020. This page provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. United Kingdom Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on February of 2021.

Interest Rate in the United Kingdom is expected to be 0.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in the United Kingdom to stand at -0.10 in 12 months time. In the long-term, the United Kingdom Interest Rate is projected to trend around -0.10 percent in 2022, according to our econometric models.

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United Kingdom Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
0.10 0.10 17.00 0.10 1971 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-12-17 12:00 PM BoE Interest Rate Decision 0.1% 0.1% 0.1% 0.1%
2020-12-17 12:00 PM BoE Quantitative Easing £875B £875B £875B
2020-12-17 12:00 PM BoE MPC Vote Hike 0/9 0/9 0/9 0/9
2020-12-17 12:00 PM BoE MPC Vote Unchanged 9/9 9/9 9/9 9/9
2021-02-04 12:00 PM BoE MPC Vote Hike 0/9 0/9 0/9
2021-02-04 12:00 PM MPC Meeting Minutes
2021-02-04 12:00 PM Monetary Policy Report
2021-02-04 12:00 PM BoE Quantitative Easing £875B £875B £875B


News Stream
BoE Leaves Rates and Asset Purchases Unchanged
The Bank of England voted unanimously to maintain Bank Rate at a record low of 0.1% and the size of its bond-buying program at £875 billion during its December meeting, as policymakers took a wait-and-see approach amid uncertainty surrounding a post-Brexit trade deal and concerns over the coronavirus situation. Still, the central bank noted that the successful trialing of some Covid vaccines and initial plans to roll them out widely over the first half of next year will likely reduce the downside risks to the economic outlook. Looking ahead, officials pledged to take whatever additional action is necessary to achieve the 2% inflation target, in a way that helps to sustain growth and employment. CPI inflation is expected to rise quite sharply towards the target in the spring, as the VAT cut comes to an end and the large fall in energy prices earlier this year drops out of the annual comparison.
2020-12-17
BoE Seen Leaving Monetary Policy Steady
The Bank of England is seen taking a wait-and-see approach during its last monetary policy meeting of 2020 as it is still uncertain if there would be a post-Brexit trade agreement. Policymakers are expected to leave the benchmark interest rate at a record low of 0.1% and the bond-buying programme at £875 billion, after extending it by a larger-than-expected £150 billion in November. Still, investors will be looking for more guidance on this additional stimulus and any clues over how to implement negative interest rates as the key bank rate is likely to be cut to -0.1% next year.
2020-12-17
BoE Increases Bond-Buying
The Bank of England left its Bank Rate at a record low of 0.1% on November 5th 2020 and increased the size of its bond-buying program by a larger-than-expected £150 billion to £875 billion, as the country entered a new coronavirus lockdown. Policymakers noted that there has been a rapid rise in rates of Covid infection and the UK Government has responded by increasing the severity of Covid restrictions. Also, consumer spending has softened across a range of high-frequency indicators, while investment intentions have remained weak. The central bank sees the economy shrinking by 11% in Q4 2020, much worse than a 5.4% drop projected in August and to grow by a stronger 11% in Q4 2021. Inflation is expected higher at 0.6% in Q4 2020 (vs 0.3% in August) and the unemployment rate is seen lower at 6.3% (vs 7.5%). The key bank rate is expected to remain steady at 0.1% through the rest of 2020 but is likely to be cut to -0.1% next year.
2020-11-05
BoE Keeps Policy Steady, Considers Negative Rates
The Bank of England voted unanimously to maintain Bank Rate at a record low of 0.1% and the size of its bond-buying program at £745 billion during its September meeting. Policymakers noted that domestic economic data have been a little stronger than expected in August, while the outlook for the economy remains unusually uncertain due to the coronavirus pandemic and recent Brexit developments, leaving the door open to negative interest rates and more QE. CPI inflation is expected to remain below 1% until early 2021 and unemployment will probably remain elevated for some time. The central bank also said it does not intend to tighten monetary policy until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably.
2020-09-17

United Kingdom Interest Rate
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).