The Bank of England voted unanimously to leave the Bank Rate unchanged at 0.75 percent on November 1st 2018, in line with market expectations. Policymakers said that if the economy continues to develop in line with forecasts, further tightening will be appropriate. The central bank lowered growth forecasts for both 2018 (1.3 percent from 1.4 percent) and 2019 (1.7 percent compared to 1.8 percent). Inflation is seen higher at 2.5 percent (2.3 percent in the August forecast) in the end of 2018 but lower at 2.1 percent (2.2 percent) in Q4 2019. Interest Rate in the United Kingdom averaged 7.56 percent from 1971 until 2018, 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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BoE Leaves Rates Unchanged


The Bank of England voted unanimously to leave the Bank Rate steady at 0.75 percent on November 1st 2018, in line with market expectations. Policymakers said that if the economy continues to develop in line with forecasts, further tightening will be appropriate. The stock of UK government bond purchases, financed by the issuance of central bank reserves, was maintained at £435 billion.

The central bank lowered growth forecasts for both 2018 (1.3 percent from 1.4 percent) and 2019 (1.7 percent compared to 1.8 percent). Inflation is seen higher at 2.5 percent (2.3 percent in the August forecast) in the end of 2018 but lower at 2.1 percent (2.2 percent) in Q4 2019. 

Excerpts from the BoE Monetary Policy Summary:

The global economy continues to grow at above potential rates, supporting UK net trade. Growth has softened, however, and become more uneven across countries, and downside risks have risen. Global financial conditions have tightened, particularly in emerging market economies, and activity has slowed in the euro area.  Trade restrictions have increased and there is a risk of further escalation.

The MPC judges that aggregate supply and demand are now broadly in balance. The labour market remains tight, with the employment rate and vacancies around record highs, and the unemployment rate at its lowest since the mid-1970s. Regular pay growth has been stronger than expected, rising to over 3%.  Although modest by historical standards, the projected pace of UK GDP growth is slightly faster than the diminished rate of supply growth, which averages around 1½% per year. A margin of excess demand is therefore expected to build, feeding through into higher growth in domestic costs. The contribution of external cost pressures, which has accounted for above-target inflation since the beginning of 2017, is projected to ease over the forecast period. Taking these influences together, CPI inflation is projected to remain above the target for most of the forecast period, before reaching 2% by the end of the third year.

The economic outlook will depend significantly on the nature of EU withdrawal, in particular the form of new trading arrangements, the smoothness of the transition to them and the responses of households, businesses and financial markets. The implications for the appropriate path of monetary policy will depend on the balance of the effects on demand, supply and the exchange rate. The MPC judges that the monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction.

At this meeting the MPC judged that the current stance of monetary policy remained appropriate. The Committee also judges that, were the economy to continue to develop broadly in line with the November Inflation Report projections, an ongoing tightening of monetary policy over the forecast period would be appropriate to return inflation sustainably to the 2% target at a conventional horizon. Any future increases in Bank Rate are likely to be at a gradual pace and to a limited extent. 


BoE | Joana Taborda | joana.taborda@tradingeconomics.com
11/1/2018 1:13:49 PM



Calendar GMT Actual Previous Consensus TEForecast
2018-08-02 11:00 AM BoE Interest Rate Decision 0.75% 0.5% 0.75% 0.75%
2018-09-13 11:00 AM BoE Interest Rate Decision 0.75% 0.75% 0.75% 0.75%
2018-11-01 12:00 PM BoE Interest Rate Decision 0.75% 0.75% 0.75% 0.75%
2018-11-20 10:00 AM BoE Inflation Report Hearings
2018-11-20 10:00 AM BoE Gov Carney Speech
2018-12-20 12:00 PM BoE Interest Rate Decision 0.7% 1%


United Kingdom Money Last Previous Highest Lowest Unit
Interest Rate 0.75 0.75 17.00 0.25 percent [+]
Interbank Rate 0.89 0.89 15.63 0.28 percent [+]
Money Supply M0 81938.00 82043.00 82242.00 3529.00 GBP Million [+]
Money Supply M1 1750911.00 1746719.00 1750911.00 82310.00 GBP Million [+]
Money Supply M2 2382445.00 2377022.00 2382445.00 167429.00 GBP Million [+]
Money Supply M3 2847363.00 2833088.00 2847363.00 262973.00 GBP Million [+]
Central Bank Balance Sheet 592950.00 592856.00 592950.00 76991.00 GBP Million [+]
Banks Balance Sheet 3783007.00 3746875.00 4060273.00 3342179.00 GBP Million [+]
Foreign Exchange Reserves 164239.03 161256.43 164685.93 35190.42 USD Million [+]
Loans to Private Sector 2430626.00 2371947.00 2813008.00 8755.00 GBP Million [+]
Deposit Interest Rate 0.50 0.50 4.25 0.00 percent [+]
Lending Rate 1.00 1.00 4.75 0.50 percent [+]
Private Debt to GDP 229.40 228.80 247.70 157.30 percent [+]


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). 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 November of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
0.75 0.75 17.00 0.25 1971 - 2018 percent Daily




Country Last
Argentina 63.29 Nov/18
Turkey 24.00 Oct/18
Mexico 8.00 Nov/18
Russia 7.50 Oct/18
Brazil 6.50 Oct/18
India 6.50 Oct/18
South Africa 6.50 Oct/18
Indonesia 6.00 Nov/18
China 4.35 Oct/18
Saudi Arabia 2.75 Oct/18
United States 2.25 Nov/18
Canada 1.75 Oct/18
Australia 1.50 Nov/18
South Korea 1.50 Oct/18
Singapore 1.45 Oct/18
United Kingdom 0.75 Nov/18
Euro Area 0.00 Oct/18
France 0.00 Oct/18
Germany 0.00 Oct/18
Italy 0.00 Oct/18
Netherlands 0.00 Oct/18
Spain 0.00 Oct/18
Japan -0.10 Oct/18
Switzerland -0.75 Oct/18


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