United Kingdom Interest Rate
Sep 21, 2023
Nov 02, 2023
Time to Release
1 Months 10 Days 7 Hours
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).
The Bank of England held its policy interest rate at 5.25% on September 21st, keeping borrowing costs at their highest level since 2008, as policymakers opted for a wait-and-see approach following the latest inflation and labor data, which suggested that the accumulated impacts of previous policy tightening might be taking effect. It was the first pause in policy tightening in nearly two years, following the central bank's unprecedented 515 bps hikes. The Monetary Policy Committee voted 5-4 in favor of holding rates steady, with four members advocating for an additional 25 bps increase. The central bank also stated that CPI inflation is expected to decline significantly in the near term, reflecting lower energy inflation, despite renewed upward pressure from oil prices, and further declines in food and core goods price inflation. Policymakers have reiterated their commitment to tightening policy further if deemed necessary.
United Kingdom Interest Rate History
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