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 benchmark interest rate in Hungary was last recorded at 6.50 percent. This dataset provides the latest reported value for - Hungary Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Graph and download economic data for Bank of England Policy Rate in the United Kingdom (BOERUKM) from Nov 1694 to Jan 2017 about academic data, United Kingdom, and rate.

Key information about United States Bank Lending Rate

• United States Bank Lending Rate was reported at 7.500 % pa in Mar 2025.
• This stayed constant from the previous number of 7.500 % pa for Mar 2025.
• US Bank Lending Rate data is updated daily, averaging 4.250 % pa from Aug 1955 to 24 Mar 2025, with 25436 observations.
• The data reached an all-time high of 8.500 % pa in 18 Sep 2024 and a record low of 3.250 % pa in 16 Mar 2022.
• US Bank Lending Rate data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Bank Lending Rate: Daily.

In Februar 2025, South Korea's central bank reduced the base rate to **** percent. Between May 2020 and January 2023, the rate had seen a continuous increase, impacting especially the housing market during this time.

India Base Rate: Private Sector Banks: ICICI Bank Limited data was reported at 8.550 % pa in Dec 2018. This records an increase from the previous number of 8.300 % pa for Sep 2018. India Base Rate: Private Sector Banks: ICICI Bank Limited data is updated quarterly, averaging 9.525 % pa from Sep 2010 (Median) to Dec 2018, with 34 observations. The data reached an all-time high of 10.000 % pa in Mar 2015 and a record low of 7.500 % pa in Sep 2010. India Base Rate: Private Sector Banks: ICICI Bank Limited data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB002: Base Rate.

The dataset shows structure of interest rates

Note: 1. For the year 1995-96, interest rate on deposits of maturity above 3 years, and from 1996-97 onwards, interest rates on deposit for all the maturities refer to the deposit rates of 5 major public sector banks as at end-March. 2. From 1994-95 onwards, data on minimum general key lending rates prescribed by RBI refers to the prime lending rates of 5 major public sector banks. 3. For 2011-12, data on deposit rates and Base rates of 5 major public sector banks refer to the period up to July 31, 2010. From July 1, 2010 BPLR System is replaced by Base Rate System. Accordingly the data reflects the Base Rate of five major public sector banks. Data for 2010-11 for Call/Notice Money rates are average of April-July 2010. 4. Data for dividend rate and yield rate for units of UTI are based on data received from Unit Trust of India. 5. Data on annual(gross) redemption yield of Government of India securities are based on redemption yield which is computed from 2000-01 as the mean of the daily weighted average yield of the transactions in each traded security. The weight is calculated as the share of the transaction in a given security in the aggregated value. 6. Data on prime lending rates for IDBI, IFCI and ICICI for the year 1999-00 relates to long-term prime lending rates in January 2000. 7. Data on prime lending rates for State Financial Corporation for all the years and for other term lending institutions from 2002-03 onwards relate to long-term (over 36-month) PLR. 8. Data on prime lending rate of IIBI/ IRBI from 2003-04 onwards relate to single PLR effective July 31, 2003. 9. IDBI ceased to be term lending institution on its conversion into a banking entity effective October 11, 2004. 10. ICICI ceased to be a term-lending institution after its merger with ICICI Bank. 11. Figures in brackets indicate lending rate charged to small-scale industries. 12. IFCI has become a non-bank financial company. 13. IIBI is in the process of voluntary winding up.

India Base Rate: Foreign Banks: Woori Bank data was reported at 8.150 % pa in Dec 2018. This records an increase from the previous number of 7.850 % pa for Sep 2018. India Base Rate: Foreign Banks: Woori Bank data is updated quarterly, averaging 8.250 % pa from Sep 2014 (Median) to Dec 2018, with 18 observations. The data reached an all-time high of 9.450 % pa in Dec 2015 and a record low of 7.100 % pa in Mar 2018. India Base Rate: Foreign Banks: Woori Bank data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB002: Base Rate.

The benchmark interest rate in the United Kingdom was last recorded at 4.25 percent. This dataset provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The benchmark interest rate in the United States was last recorded at 4.50 percent. This dataset provides the latest reported value for - United States Fed Funds Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

From 2003 to 2025, the central banks of the United States, United Kingdom, and European Union exhibited remarkably similar interest rate patterns, reflecting shared global economic conditions. In the early 2000s, rates were initially low to stimulate growth, then increased as economies showed signs of overheating prior to 2008. The financial crisis that year prompted sharp rate cuts to near-zero levels, which persisted for an extended period to support economic recovery. The COVID-19 pandemic in 2020 led to further rate reductions to historic lows, aiming to mitigate economic fallout. However, surging inflation in 2022 triggered a dramatic policy shift, with the Federal Reserve, Bank of England, and European Central Bank significantly raising rates to curb price pressures. As inflation stabilized in late 2023 and early 2024, the ECB and Bank of England initiated rate cuts by mid-2024, and the Federal Reserve also implemented its first cut in three years, with forecasts suggesting a gradual decrease in all major interest rates between 2025 and 2026. Divergent approaches within the European Union While the ECB sets a benchmark rate for the Eurozone, individual EU countries have adopted diverse strategies to address their unique economic circumstances. For instance, Hungary set the highest rate in the EU at 13 percent in September 2023, gradually reducing it to 6.5 percent by October 2024. In contrast, Sweden implemented more aggressive cuts, lowering its rate to 2.25 percent by February 2025, the lowest among EU members. These variations highlight the complex economic landscape that European central banks must navigate, balancing inflation control with economic growth support. Global context and future outlook The interest rate changes in major economies have had far-reaching effects on global financial markets. Government bond yields, for example, reflect these policy shifts and investor sentiment. As of December 2024, the United States had the highest 10-year government bond yield among developed economies at 4.59 percent, while Switzerland had the lowest at 0.27 percent. These rates serve as important benchmarks for borrowing costs and economic expectations worldwide.

Nepal Commercial Banks: Base Rate data was reported at 10.030 % pa in Oct 2018. This stayed constant from the previous number of 10.030 % pa for Sep 2018. Nepal Commercial Banks: Base Rate data is updated monthly, averaging 7.890 % pa from Nov 2013 (Median) to Oct 2018, with 60 observations. The data reached an all-time high of 10.470 % pa in Jul 2018 and a record low of 6.100 % pa in Aug 2016. Nepal Commercial Banks: Base Rate data remains active status in CEIC and is reported by Nepal Rastra Bank. The data is categorized under Global Database’s Nepal – Table NP.M007: Deposit Rates and Lending Rates.

Bank Lending Rate in the United States remained unchanged at 7.50 percent in June. This dataset provides - United States Average Monthly Prime Lending Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

India Base Rate: Foreign Banks: Shinhan Bank data was reported at 7.950 % pa in Dec 2018. This records an increase from the previous number of 7.750 % pa for Sep 2018. India Base Rate: Foreign Banks: Shinhan Bank data is updated quarterly, averaging 8.275 % pa from Sep 2010 (Median) to Dec 2018, with 34 observations. The data reached an all-time high of 9.250 % pa in Jun 2015 and a record low of 7.250 % pa in Jun 2011. India Base Rate: Foreign Banks: Shinhan Bank data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB002: Base Rate.

Graph and download economic data for Bank Prime Loan Rate Changes: Historical Dates of Changes and Rates from 1955-08-04 to 2024-12-20 about prime, loans, interest rate, banks, interest, depository institutions, rate, and USA.

Graph and download economic data for Bank Prime Loan Rate (DPRIME) from 1955-08-04 to 2025-06-26 about prime, loans, interest rate, banks, interest, depository institutions, rate, and USA.

Bank Lending Rate in France decreased to 3.68 percent in May from 3.86 percent in April of 2025. This dataset provides the latest reported value for - France Bank Lending Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

India Base Rate: Public Sector Banks: IDBI Bank data was reported at 8.000 % pa in Dec 2018. This stayed constant from the previous number of 8.000 % pa for Sep 2018. India Base Rate: Public Sector Banks: IDBI Bank data is updated quarterly, averaging 10.000 % pa from Sep 2010 (Median) to Dec 2018, with 34 observations. The data reached an all-time high of 10.750 % pa in Mar 2012 and a record low of 8.000 % pa in Dec 2018. India Base Rate: Public Sector Banks: IDBI Bank data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB002: Base Rate.

Base Rate: Public Sector Banks: State Bank of India data was reported at 8.150 % pa in Dec 2018. This records an increase from the previous number of 8.100 % pa for Sep 2018. Base Rate: Public Sector Banks: State Bank of India data is updated quarterly, averaging 9.500 % pa from Sep 2010 (Median) to Dec 2018, with 34 observations. The data reached an all-time high of 10.000 % pa in Mar 2015 and a record low of 7.500 % pa in Sep 2010. Base Rate: Public Sector Banks: State Bank of India data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB002: Base Rate.

Bank Lending Rate In the Euro Area decreased to 3.81 percent in May from 3.92 percent in April of 2025. This dataset provides - Euro Area Bank Lending Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.