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United Kingdom Interest Rate
Last Release
May 08, 2025
Actual
4.25
Units In
%
Previous
4.5
Frequency
Daily
Next Release
Jun 19, 2025
Time to Release
1 Months 8 Days 3 Hours
Highest | Lowest | Average | Date Range | Source |
17 Nov 1979 | 0.1 Mar 2020 | 7.05 % | 1971-2025 | Bank of England |
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).
Latest Updates
The Bank of England voted 5–4 to cut Bank Rate by 25bps to 4.25% in May as expected. Two members preferred a larger cut to 4%, while two opted to hold at 4.5%. The decision reflects continued disinflation progress as external shocks eased and tight policy helped anchor inflation expectations. UK GDP growth has slowed since mid-2024, and the labour market is loosening. CPI inflation fell to 2.6% in March, though a temporary rise to 3.5% is expected in Q3 due to earlier energy price spikes. Inflation is forecast to ease again thereafter. Pay growth remains high but is expected to slow. Global uncertainty has risen due to new US tariffs, weakening global growth and lowering market interest rate expectations. The MPC remains committed to returning inflation to 2% sustainably. Future policy will depend on evolving risks and inflation dynamics. A cautious, data-driven approach to reducing policy restraint remains appropriate.
United Kingdom Interest Rate History
Last 12 readings