UK Monetary Policy
Track Bank of England interest rates and policy decisions
The Bank Rate is the interest rate set by the Bank of England's Monetary Policy Committee (MPC). It is the rate at which commercial banks can borrow from the central bank.
Changes to Bank Rate feed through to mortgage rates, savings rates, and borrowing costs across the economy. The MPC uses this tool to influence inflation and maintain price stability.
Bank Rate History
Official Bank Rate set by the Monetary Policy Committee.
Mortgage Rates
Average standard variable rate mortgage rate paid by households.
Quoted rate on new 2-year fixed mortgages at 75% LTV.
How Bank Rate changes transmit to mortgage rates paid by households.
How Bank Rate changes affect quoted new mortgage rates.
Savings Rates
Interest rate on 1-year fixed rate bond deposits from households.
How Bank Rate changes transmit to household savings rates.
Housing Credit
Total sterling mortgage approvals for house purchase, seasonally adjusted.
Relative movements in Bank Rate and mortgage approvals (rebased to Jan 2020 = 100).
Market Rates
UK 10-year government bond nominal par yield, monthly average.
Bank Rate vs Inflation
Compare Bank Rate with annual food inflation - both measured in percentage points.
Bank Rate minus food inflation. A negative value means inflation exceeds the policy rate.
Note on Real Bank Rate
The real Bank Rate shown here uses food inflation as a proxy for headline CPI inflation. A proper CPI annual inflation rate indicator will be added when the source is verified.
How Bank Rate Affects the Economy
Higher Bank Rate means higher mortgage rates, increasing monthly payments for variable rate and new fixed-rate mortgages.
Higher Bank Rate typically leads to better savings rates, rewarding savers with higher returns on deposits.
Higher rates slow spending and borrowing, reducing demand and helping bring inflation back toward the 2% target.
Rate changes take 18-24 months to fully affect the economy, so the MPC must anticipate future inflation trends.
Source: Bank of England Interactive Database (IADB).
Bank Rate (IUDBEDR): The official Bank Rate set by the Monetary Policy Committee. Rate changes take effect from the date of the MPC announcement.
10-Year Gilt Yield (IUMAMNPY): Monthly average nominal par yield on 10-year UK government bonds, calculated using the Variable Roughness Penalty model.
Effective Mortgage Rate (IUMTLMV): Average standard variable rate (SVR) mortgage rate paid by households.
Quoted Mortgage Rate (IUMBV34): Quoted 2-year fixed rate mortgage at 75% loan-to-value ratio.
Savings Rate (IUMWTFA): Interest rate on 1-year fixed rate bond deposits from households.
Mortgage Approvals (LPMVTVX): Total sterling mortgage approvals for house purchase (seasonally adjusted), in thousands.
MPC decisions are announced at 12:00 GMT on decision days, eight times per year.