The benchmark interest rate in the United Kingdom was last recorded at 4 percent. This dataset provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Interest-bearing sight deposits were the type of savings deposit with the highest outstanding amount in the United Kingdom in the first half of 2025. The outstanding value of those types of deposits in the UK amounted to 903 billion British pounds that year, while the value of NS&I deposits was 241 billion British pounds.

In the first quarter of 2025, 68 percent of people in the East of England were on track for at least Pensions and Lifetime Savings Association (PLSA) minimum retirement living standards. That made the East of England the region in the United Kingdom with the highest share of people on track. In contrast, Northern Ireland and North-East England were the regions with the lowest share of people on track for the minimum retirement standards, with only 52 percent of people on track.

In the first quarter of 2025, people with an income under 30,000 British pounds considered that having more income was what would make them feel the most financially independent. For 35 percent of respondents with an income of over 50,000 British pounds, owning their own homes is what would make them feel the most financially independent.

According to a survey conducted in the first quarter of 2025, disabled and self-employed people were the demographic groups in the United Kingdom with the lowest levels of retirement savings. 54 percent of disabled people had less than the minimum retirement savings and thus were at risk of not being able to cover basic needs when they retire. Individuals who were non-disabled, white, not LGBTQ+, aged 30 to 39, and working full-time were more likely to report comfortable or moderate retirement lifestyles. The largest differences were observed across disability status, sexual and gender orientation, and employment type.

As of the first quarter of 2025, 26 percent of people in the United Kingdom thought that the amount of savings needed to cope with emergencies was between 1,000 and 4,999 British pounds. In contrast, 12 percent of survey respondents thought that over 25,000 British pounds were necessary.

As of March 2025, Fidelity Worldwide Investment was the leading retail and institutional fund management company in the United Kingdom (UK), in terms of value of managed ISA funds (Individual Saving Accounts funds). ISA funds are a class of retail investment arrangements that are available to citizens of the United Kingdom and offer investment perks, such as favorable tax status. At that time, Fidelity Worldwide Investment managed ISA funds worth almost 10.36 billion British pounds. Although this was the case, Fidelity Worldwide Investment ranked third in terms of total retail funds under management in the United Kingdom (UK).

This dataset provides values for INTEREST RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

August 2024 marked a significant shift in the UK's monetary policy, as it saw the first reduction in the official bank base interest rate since August 2023. This change came after a period of consistent rate hikes that began in late 2021. In a bid to minimize the economic effects of the COVID-19 pandemic, the Bank of England cut the official bank base rate in March 2020 to a record low of *** percent. This historic low came just one week after the Bank of England cut rates from **** percent to **** percent in a bid to prevent mass job cuts in the United Kingdom. It remained at *** percent until December 2021 and was increased to one percent in May 2022 and to **** percent in October 2022. After that, the bank rate increased almost on a monthly basis, reaching **** percent in August 2023. It wasn't until August 2024 that the first rate decrease since the previous year occurred, signaling a potential shift in monetary policy. Why do central banks adjust interest rates? Central banks, including the Bank of England, adjust interest rates to manage economic stability and control inflation. Their strategies involve a delicate balance between two main approaches. When central banks raise interest rates, their goal is to cool down an overheated economy. Higher rates curb excessive spending and borrowing, which helps to prevent runaway inflation. This approach is typically used when the economy is growing too quickly or when inflation is rising above desired levels. Conversely, when central banks lower interest rates, they aim to encourage borrowing and investment. This strategy is employed to stimulate economic growth during periods of slowdown or recession. Lower rates make it cheaper for businesses and individuals to borrow money, which can lead to increased spending and investment. This dual approach allows central banks to maintain a balance between promoting growth and controlling inflation, ensuring long-term economic stability. Additionally, adjusting interest rates can influence currency values, impacting international trade and investment flows, further underscoring their critical role in a nation's economic health. Recent interest rate trends Between 2021 and 2024, most advanced and emerging economies experienced a period of regular interest rate hikes. This trend was driven by several factors, including persistent supply chain disruptions, high energy prices, and robust demand pressures. These elements combined to create significant inflationary trends, prompting central banks to raise rates in an effort to temper spending and borrowing. However, in 2024, a shift began to occur in global monetary policy. The European Central Bank (ECB) was among the first major central banks to reverse this trend by cutting interest rates. This move signaled a change in approach aimed at addressing growing economic slowdowns and supporting growth.

The median wealth in pensions not yet in payment for individuals in Great Britain aged 55 years and older amounted to 96,500 British pounds between April 2020 and March 2022. Those figures refer to both defined benefits and defined contributions. It could also be observed how pension wealth increased with age.

In July 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In the first half of 2025, Russia maintained the highest interest rate at 18 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at 0 percent in July 2025. In contrast, Russia maintained a high inflation rate of 8.8 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

Between January 2018 and July 2025, the United Kingdom's consumer price inflation rate showed notable volatility. The rate hit its lowest point at *** percent in August 2020 and peaked at *** percent in October 2022. By September 2024, inflation had moderated to *** percent, but the following months saw inflation increase again, and it remained on a slightly upward trajectory in the first half of 2025. The Bank of England's interest rate policy closely tracked these inflationary trends. Rates remained low at -* percent until April 2020, when they were reduced to *** percent in response to economic challenges. A series of rate increases followed, reaching a peak of **** percent from August 2023 to July 2024. The central bank then initiated rate cuts in August and November 2024, lowering the rate to **** percent, signaling a potential shift in monetary policy. In February 2025, the Bank of England implemented another rate cut, setting the bank rate at *** percent, which was further reduced to **** percent in May 2025. Global context of inflation and interest rates The UK's experience reflects a broader international trend of rising inflation and subsequent central bank responses. From January 2022 to July 2024, advanced and emerging economies alike increased their policy rates to counter inflationary pressures. However, a shift began in late 2024, with many countries, including the UK, starting to lower rates. This change suggests a potential new phase in the global economic cycle and monetary policy approach. Comparison with other major economies The UK's monetary policy decisions align closely with those of other major economies. The United States, for instance, saw its federal funds rate peak at **** percent in August 2023, mirroring the UK's rate trajectory. Similarly, central bank rates in the EU all increased drastically between 2022 and 2024. These synchronized movements reflect the global nature of inflationary pressures and the coordinated efforts of central banks to maintain economic stability. As with the UK, both the U.S. and EU began considering rate cuts in late 2024, signaling a potential shift in the global economic landscape.

The average interest rate of variable-rate cash ISA deposits in the United Kingdom (UK) were lower in December 2024 than a year earlier. The interest rate of that type of cash ISAs peaked in October 2023 at **** percent. In contrast, the average interest rate of variable-rate cash ISA deposits amounted to just **** percent in March 2021.