The Bank of England voted unanimously to keep its benchmark interest rate on hold at a record low of 0.1 percent during its June 2021 meeting, and by a majority of 8-1 to leave its bond-buying programme unchanged as widely expected. The central bank also reiterated it does not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2 percent inflation target sustainably. Policymakers said the economy would experience a temporary period of strong GDP growth following the relaxation of restrictions on economic activity, after which it will fall back. At the same time, CPI inflation is expected to pick up further above the target, owing primarily to developments in energy and other commodity prices, and is likely to exceed 3 percent for a temporary period, before returning to around 2 percent in the medium term. source: Bank of England

Interest Rate in the United Kingdom averaged 7.27 percent from 1971 until 2021, 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 July 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 0.50 percent in 2022 and 1.00 percent in 2023, 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 - 2021 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2021-06-24 11:00 AM BoE Interest Rate Decision 0.1% 0.1% 0.1% 0.1%
2021-06-24 11:00 AM BoE MPC Vote Cut 0/9 0/9 0/9 0/9
2021-06-24 11:00 AM BoE MPC Vote Unchanged 9/9 9/9 9/9 9/9
2021-06-24 11:00 AM BoE MPC Vote Hike 0/9 0/9 0/9 0/9
2021-08-05 11:00 AM BoE MPC Vote Unchanged 9/9 9/9
2021-08-05 11:00 AM BoE MPC Vote Hike 0/9 0/9
2021-08-05 11:00 AM MPC Meeting Minutes
2021-08-05 11:00 AM BoE Quantitative Easing £875B £875B £875B


News Stream
Bank of England Keeps Dovish Tone
The Bank of England voted unanimously to keep its benchmark interest rate on hold at a record low of 0.1 percent during its June 2021 meeting, and by a majority of 8-1 to leave its bond-buying programme unchanged as widely expected. The central bank also reiterated it does not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2 percent inflation target sustainably. Policymakers said the economy would experience a temporary period of strong GDP growth following the relaxation of restrictions on economic activity, after which it will fall back. At the same time, CPI inflation is expected to pick up further above the target, owing primarily to developments in energy and other commodity prices, and is likely to exceed 3 percent for a temporary period, before returning to around 2 percent in the medium term.
2021-06-24
No Changes Expected from the BoE
The Bank of England is seen leaving its key rate unchanged at a record low of 0.1% and bond purchases at £3.4 billion per week in June. However, investors expect policymakers to give more clues on the economic outlook and acknowledge inflation is on the rise and the GDP rebound is surprisingly stronger-than-anticipated. Pressure is mounting on the central bank to take some action and change the rhetoric over inflation, specially after the Fed's hawkish shift last week. Still, the BoE will likely hold hold the current policy stance until at least August. June is also the last monetary policy meeting of Andy Haldane, the bank's chief economist, who has been warning that inflation threatens to overheat the UK economy.
2021-06-24
BoE Slows Bond-Buying, Hikes 2021 GDP Forecast
The Bank of England kept its monetary policy unchanged during its May 2021 meeting, and announced a slowdown in the pace of purchases of British government bonds to £3.4 billion per week, from £4.4 billion previously, signaling it is on course to end emergency support later this year. The central bank raised 2021 GDP forecast sharply to 7.25 percent from its previous estimate of 5 percent growth, citing easing restrictions on economic activity and the country's fast rollout of COVID-19 vaccinations. For 2022, however, the economy is seen expanding 5.75 percent, less than February's projections of 7.25 percent. The central bank also said it does not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2 percent inflation target sustainably.
2021-05-06
BoE to Hold Rates, Raise 2021 GDP Forecast
The Bank of England is expected to keep its benchmark interest rate and its bond-buying programme unchanged during its May 2021 meeting, but it could be one of the first central banks to signal tightening monetary policy as the country's economic recovery accelerates and inflation rises. The central bank is expected to raise 2021 GDP forecast sharply from its previous estimate of 5% growth, helped by the re-opening of the economy and the rapid pace of COVID-19 vaccinations. On Wednesday, investors were pricing in a 15 basis-point increase in interest rates by September 2022, while last month they were expecting a first rate hike only in 2023.
2021-05-06

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).