UK Official Bank Rate
It's an important driver of commodity demand - lower interest rates decrease carrying costs. Reduced costs to store goods will spur companies to make investments in raw materials, leading to higher inventory levels;
The rate decision is usually priced in the market, so it tends to be overshadowed by the Monetary Policy Summary, which is focused on the future;
- UK Official Bank Rate Graph
- History
Expected Impact / Date | Actual | Forecast | Previous |
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Feb 6, 2025 | 4.50% | 4.50% | 4.75% |
Dec 19, 2024 | 4.75% | 4.75% | 4.75% |
Nov 7, 2024 | 4.75% | 4.75% | 5.00% |
Sep 19, 2024 | 5.00% | 5.00% | 5.00% |
Aug 1, 2024 | 5.00% | 5.00% | 5.25% |
Jun 20, 2024 | 5.25% | 5.25% | 5.25% |
May 9, 2024 | 5.25% | 5.25% | 5.25% |
Mar 21, 2024 | 5.25% | 5.25% | 5.25% |
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- UK Official Bank Rate News
- From @LiveSquawk|44 hr ago
post: BoE’s Gov Bailey: Wouldn’t Over-Interpret Moves In Voting Patterns - We Think Path For Disinflation Remains In Place post: BOE GOV. BAILEY, WHEN ASKED IF THE BOE IS HAPPY TO CUT RATES AS INFLATION RISES: I EXPECT PATH FOR RATES WILL BE DOWNWARD, BUT THERE IS MORE UNCERTAINTY. post: BOE GOV. BAILEY: THE CUT TO GDP GROWTH FORECAST FOR 2025 IS NOT ABOUT THE BUDGET REALLY.
- From @financialjuice|44 hr ago|3 comments
post: BOE GOV. BAILEY: WE EXPECT TO BE ABLE TO CUT THE BANK RATE FURTHER post: BANK OF ENGLAND GOVERNOR BAILEY: WE EXPECT TO BE ABLE TO CUT BANK RATE FURTHER BUT WE WILL HAVE TO JUDGE MEETING BY MEETING HOW FAR AND HOW FAST ROAD AHEAD WILL HAVE BUMPS BEHIND UPTICK IN HEADLINE INFLATION STANDS A CONTINUED, GRADUAL EASING OF UNDERLYING INFLATIONARY… post: BoE Gov Bailey: Contact Of Weakening Economic Activity - Coming Rise In Inflation Almost Entirely Due To Factors Not Directly Linked To Pressures In The UK Economy - We Expect These Factors To Be Temporary post: BOE'S BAILEY: IT'S IMPORTANT TO A TAKE GRADUAL APPROACH TO EASING post:
*BOE'S BAILEY: RISKS TO INFLATION ON BOTH SIDES
*BOE'S BAILEY: SHOULD SEE 'GRADUAL' AND 'CAREFUL' TOGETHER
*BAILEY: BOE MUST PROCEED CAREFULLY, JUDGE AFRESH EACH MEETING
- From bankofengland.co.uk|45 hr ago|3 comments
The Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. The MPC adopts a medium-term and forward-looking approach to determine the monetary stance required to achieve the inflation target sustainably. At its meeting ending on 5 February 2025, the MPC voted by a majority of 7–2 to reduce Bank Rate by 0.25 percentage points, to 4.5%. Two members preferred to reduce Bank Rate by 0.5 percentage points, to 4.25%. There has been substantial progress on disinflation over the past two years, as previous external shocks have receded, and as the restrictive stance of monetary policy has curbed second-round effects and stabilised longer-term inflation expectations. That progress has allowed the MPC to withdraw gradually some degree of policy restraint, while maintaining Bank Rate in restrictive territory so as to continue to squeeze out persistent inflationary pressures. post: Bank Of England Cuts Rates By 25Bps To 4.500%; In Line With Consensus; MPC 7 Vote For 25Bps 2 Vote For 50Bps post: BANK OF ENGLAND POLICYMAKERS VOTE 7-2 TO CUT RATES BY 0.25 PERCENTAGE POINTS TO 4.5% (REUTERS POLL: 8-1 VOTE TO CUT TO 4.5%) BOE MPC EXTERNAL MEMBERS DHINGRA AND MANN VOTED TO CUT RATES BY 0.50 PERCENTAGE POINTS TO 4.25% BOE: UK CPI INFLATION TO PEAK AT 3.7% IN Q3 2025 (NOV:…Base rate cut to 4.5% – here's why and what it means for your mortgage and savings The base rate has been cut to 4.5% from 4.75% by the Bank of England. This rate is used by the central bank to charge other banks and lenders when they borrow money, so the move can impact mortgage and savings rates. It's also used by the Bank of England as a tool to control inflation (the rate at which prices rise). The Bank has a target of 2% for the Consumer Prices Index (CPI) measure of inflation, which is set by the Government. This is the third time the Bank has cut the rate since August 2024, when it fell from 5.25% to 5%. The last cut, from 5% to 4.75%, was in November 2024. The Monetary Policy Committee, which determines the rate, voted by a majority of seven to two to reduce the base rate by 0.25 percentage points to 4.5%. Two members voted in favour of cutting the rate further, to 4.25%. Explaining the reasons for its decision, the Bank said "there had been substantial progress on disinflation".
- From bankofengland.co.uk|45 hr ago
The Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. The MPC adopts a medium-term and forward-looking approach to determine the monetary stance required to achieve the inflation target sustainably. At its meeting ending on 5 February 2025, the MPC voted by a majority of 7–2 to reduce Bank Rate by 0.25 percentage points, to 4.5%. Two members preferred to reduce Bank Rate by 0.5 percentage points, to 4.25%. There has been substantial progress ...
- From uk.finance.yahoo.com|47 hr ago
The Bank of England (BoE) is set to cut interest rates in its next meeting this Thursday from 4.75% to 4.5%, following lower-than-expected inflation figures for December but ongoing concerns about sluggish economic growth. Markets are pricing in a 97% probability of a rate cut, marking the third reduction in borrowing costs since the peak of 5.25% in August 2023. Susannah Streeter, head of money and markets, Hargreaves Lansdown (HL.L), said: “The scene has been set for a rate cut next week, with December’s dip in inflation and the ...
- From think.ing.com|Jan 31, 2025
Expect an 8-1 vote in favour of another rate cut next Thursday, though we doubt the Bank will drop too many hints on what comes next. We're looking for three further cuts later this year, but a shaky jobs market and the prospect of lower services inflation risks pushing the BoE into more aggressive moves Slowly but surely, financial markets are coming around to the idea of four rate cuts from the Bank of England this year. Policymakers are poised to take rates lower by 25 basis points at its meeting on 6 February. And though they’ve ...
- From brecorder.com|Dec 19, 2024
The Bank of England on Thursday kept its key interest rate at 4.75 percent, deciding against a cut in line with the US Federal Reserve, as UK inflation rises again. “We’ve held interest rates today following the two cuts since the summer,” BoE governor Andrew Bailey said in a statement. “We need to make sure we meet the two-percent inflation target on a sustained basis,” he added following a regular policy meeting and after data this week showed UK annual inflation rising to 2.6 percent. The expected rate decision came a day after ...
Released on Feb 6, 2025 |
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Released on Dec 19, 2024 |
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