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. source: Bank of England

Interest Rate in the United Kingdom averaged 7.28 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 May 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 and 0.50 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
2021-05-06 11:00 AM BoE Interest Rate Decision 0.1% 0.1% 0.1% 0.1%
2021-05-06 11:00 AM BoE Quantitative Easing £875B £875B £875B £875B
2021-05-06 11:00 AM BoE MPC Vote Hike 0/9 0/9 0/9 0/9
2021-05-06 11:00 AM BoE MPC Vote Unchanged 9/9 9/9 9/9 9/9
2021-05-11 02:30 PM BoE Gov Bailey Speech
2021-05-12 09:00 AM BoE Gov Bailey Speech
2021-05-13 12:00 PM BoE Cunliffe Speech
2021-05-13 04:00 PM BoE Gov Bailey Speech


News Stream
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
BoE Leaves Monetary Policy Unchanged
The Bank of England voted unanimously to keep its benchmark interest rate on hold at a record low of 0.1 percent and to leave its bond-buying programme unchanged during its March 2021 meeting, saying the UK GDP was projected to recover strongly over 2021 towards pre-Covid levels and CPI inflation was expected to return towards the 2 percent target in the spring. Policymakers continued to envisage that the pace of government bond purchases could remain at around its current level, with flexibility to slow it later; but signaled that the central bank stood ready to increase the pace to ensure the effective transmission of monetary policy. 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.
2021-03-18
No Major Changes Expected from the BoE
The Bank of England is expected to leave the Bank Rate at a record low of 0.1% and the size of its bond-buying program unchanged at £875 billion during its March 2021 meeting. The outlook improved since last month as the economy is reopening after a nationwide lockdown, the vaccine rollout keeps going and more than a third of the UK population has received a vaccine, and more fiscal support has been announced including an extension of furlough payments. Still, investors will be looking for any clues on the central bank's view regarding the recent rise in bond yields although BOE Governor Andrew Bailey recently highlighted it as a sign of economic optimism. The BoE last voted unanimously to keep monetary policy unchanged during its February meeting.
2021-03-18

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).