The Bank of England raised its policy interest rate by 25 basis points to 5.25% during its August 2023 meeting, marking a 14th consecutive increase, and bringing borrowing costs to fresh 2008-highs, as the central bank continues to battle high inflation. The Monetary Policy Committee voted 6-3 in favor of the quarter-point hike, with two members preferring a second straight 50 bps increase and one voting to keep rates unchanged. Policymakers noted that given the significant increase in interest rates since the start of the tightening cycle, the current monetary policy stance is restrictive. However, they also added they will ensure the Bank Rate is sufficiently restrictive for sufficiently long to return inflation to the 2% target sustainably in the medium term. Meanwhile, the central bank expects inflation to fall significantly further to around 5% by the end of the year, a quicker decline than it had anticipated in May and return to the 2% target by Q2 2025. source: Bank of England

Interest Rate in the United Kingdom averaged 7.11 percent from 1971 until 2023, reaching an all time high of 17.00 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 August of 2023.

Interest Rate in the United Kingdom is expected to be 5.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the United Kingdom Interest Rate is projected to trend around 4.50 percent in 2024 and 3.25 percent in 2025, according to our econometric models.

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United Kingdom Interest Rate



Calendar GMT Reference Actual Previous Consensus TEForecast
2023-08-03 11:00 AM BoE MPC Vote Hike 8/9 7/9 8/9
2023-08-03 11:00 AM BoE MPC Vote Unchanged 1/9 2/9 1/9
2023-08-03 11:00 AM BoE MPC Vote Cut 0/9 0/9 0/9
2023-09-21 11:00 AM BoE Interest Rate Decision 5.25% 5.5%
2023-11-02 12:00 PM BoE Interest Rate Decision
2023-12-14 12:00 PM BoE Interest Rate Decision


Related Last Previous Unit Reference
Interest Rate 5.25 5.00 percent Aug 2023
Money Supply M1 2277543.00 2297406.00 GBP Million Jul 2023
Money Supply M0 93947.00 93982.00 GBP Million Jul 2023
Money Supply M2 3041017.00 3044958.00 GBP Million Jul 2023
Money Supply M3 3534478.00 3558685.00 GBP Million Jul 2023
Central Bank Balance Sheet 999292.00 999267.00 GBP Million Aug 2023
Foreign Exchange Reserves 190072.83 184503.97 USD Million Jul 2023
Banks Balance Sheet 4385672.00 4405886.00 GBP Million Jun 2023
Loans to Private Sector 2770203.00 2732100.00 GBP Million Sep 2022
Deposit Interest Rate 4.25 4.25 percent Jul 2023
Lending Rate 4.75 4.75 percent Jul 2023

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).
Actual Previous Highest Lowest Dates Unit Frequency
5.25 5.00 17.00 0.10 1971 - 2023 percent Daily

News Stream
BoE Raises Rates by 25bps
The Bank of England raised its policy interest rate by 25 basis points to 5.25% during its August 2023 meeting, marking a 14th consecutive increase, and bringing borrowing costs to fresh 2008-highs, as the central bank continues to battle high inflation. The Monetary Policy Committee voted 6-3 in favor of the quarter-point hike, with two members preferring a second straight 50 bps increase and one voting to keep rates unchanged. Policymakers noted that given the significant increase in interest rates since the start of the tightening cycle, the current monetary policy stance is restrictive. However, they also added they will ensure the Bank Rate is sufficiently restrictive for sufficiently long to return inflation to the 2% target sustainably in the medium term. Meanwhile, the central bank expects inflation to fall significantly further to around 5% by the end of the year, a quicker decline than it had anticipated in May and return to the 2% target by Q2 2025.
2023-08-03
BoE Set to Raise Rates for 14th Time
The Bank of England is set to raise interest rates for a 14th consecutive time in August 2023, with most investors betting on a 25bps hike to 5.25% although there is a significant possibility of a second consecutive 50bps increase. Regardless of the size of the rate hike, borrowing costs would reach fresh 2008-highs, as the central bank continues to battle high inflation. In June, the inflation rate in the UK declined to 7.9%, the lowest level since March 2022. The core inflation rate also eased to 6.9% from 7.1%, but it remains well above the 2% target. However, wage growth has proven to be stubborn, and the British economy has shown resilience, managing to avoid a recession for the time being. Traders will also keep a close eye on future guidance. Market expectations suggest that interest rates may peak around 5.75% by the end of this year.
2023-08-03
Bank of England Hikes Interest Rate to 5%
The Bank of England raised its policy interest rate by 50 basis points to 5.0% during its June meeting, marking the 13th consecutive hike. This decision surprised market expectations of a smaller 25 basis point rate hike and pushed borrowing costs to their highest level since the 2008 financial crisis, all in an effort to combat persistent inflation. Policymakers have also pledged to deliver further rate hikes if the ongoing inflationary pressures persist. Latest data revealed that British inflation unexpectedly held steady at 8.7% in the year to May, defying predictions of a modest decline to 8.4% and remaining significantly above the central bank's target of 2%. Furthermore, the core inflation rate accelerated to a 31-year high of 7.1%. The Bank of England initiated the rate hikes nearly a year and a half ago, making it the first major central bank to take such action and resulting in the fastest policy tightening in over 30 years.
2023-06-22