United Kingdom Interest Rate1971-2020 Data | 2021-2022 Forecast | Calendar

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.

The Bank of England will likely leave the bank rate at a record low of 0.1% on Thursday and the size of its bond-buying program at £745 billion. Still, the central bank is expected to set the stage for more stimulus measures as the country faces greater instability amid a no-deal Brexit concerns, rising unemployment and coronavirus infections. Many economists expect the bank to take concrete action only in November as the outcome from post-Brexit trade talks becomes more clear, and the UK’s furlough scheme ends.

The Bank of England voted unanimously to maintain the key bank rate at a record low of 0.1% and the size of its bond-buying program at £745 billion as expected during its August meeting. Policymakers said Britain's economy will take longer to recover from the coronavirus-induced recession than initially thought and warned about the risks of cutting interest rates below zero. Meanwhile, the central bank said CPI inflation is expected to fall further below the 2% target, largely reflecting the direct and indirect effects of Covid-19.

The Bank of England voted unanimously to maintain the key bank rate at a record low of 0.1% on June 18th 2020, in line with market forecasts. Policymakers also voted by a majority of 8-1 to increase the target stock of purchased UK government bonds, financed by the issuance of central bank reserves, by an additional £100 billion, to take the total stock of asset purchases to £745 billion. The programme is expected to be complete around the turn of the year. The central bank will continue with the existing programme of £200 billion of UK government bond and sterling non-financial investment-grade corporate bond purchases. Policymakers added that the fall in global and UK GDP in Q2 will be less severe than anticipated although the outlook remains unusually uncertain and the economy, and especially the labour market, will therefore take some time to recover. The central bank stands ready to take further action as necessary to support the economy, officials added.