The benchmark interest rate in the United Kingdom was last recorded at 3.75 percent. This dataset provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In February 2026, the central banks of the United States, United Kingdom, and euro area each implemented several interest rate cuts, reflecting a shared shift toward monetary easing as inflation pressures continued to moderate and economic growth slowed. This synchronized easing followed a prolonged period of elevated policy rates and underscored the close alignment of monetary policy across major advanced economies. Over the longer period from 2003 to February 2026, the Federal Reserve, Bank of England, and European Central Bank displayed notably similar interest rate trajectories shaped by common global economic conditions. In the early 2000s, policy rates were kept relatively low to support growth before being raised ahead of the 2008 financial crisis as economic activity accelerated. The crisis triggered sharp reductions in interest rates to near-zero levels, which were maintained for an extended period to foster recovery. Another phase of extraordinary easing occurred in 2020, when the COVID-19 pandemic prompted central banks to cut rates to historic lows to cushion the economic shock. This stance was reversed in 2022, as surging inflation led to an aggressive tightening cycle across all three institutions. As inflation began to stabilize in late 2023 and early 2024, the European Central Bank and Bank of England initiated the first steps toward policy easing, setting the stage for the broader and more synchronized rate cuts observed in February 2026. Divergent approaches within the European Union While the European Central Bank sets a benchmark policy rate for the euro area, individual European countries have pursued differing monetary policy paths to address their specific economic conditions. For example, Hungary recorded the highest policy rate in the European Union, reaching ** percent in September 2023, before gradually reducing it to *** percent by December 2025. By contrast, Sweden adopted a more aggressive easing approach, cutting its policy rate to **** percent by the end of 2025 - the lowest level among EU member states. These divergences underscore the complexity of the European monetary landscape, as national central banks balance inflation control with the need to support economic growth. 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 July 2025, Turkey had the highest 10-year government bond yield among developed economies at **** percent, while Switzerland had the lowest at **** percent. These rates serve as important benchmarks for borrowing costs and economic expectations worldwide.

In 2026, the United Kingdom’s monetary policy continued to ease, with the Bank of England implementing rate cuts over the course of the year. The final cut reduced the Bank Rate to **** percent, reinforcing the shift toward a less restrictive policy stance as inflationary pressures moderated. This easing followed an initial policy pivot in August 2024, when the Bank of England lowered the official bank rate to * percent, marking the first rate cut since the previous year. Earlier, in response to the economic effects of the COVID-19 pandemic, the Bank of England had reduced the Bank Rate to a historic low of *** percent in March 2020 - just one week after an emergency cut from **** percent to **** percent aimed at preventing widespread job losses. The rate remained at *** percent until December 2021, before rising to * percent in May 2022 and to **** percent in October 2022. Thereafter, the Bank Rate increased almost monthly, reaching **** percent in August 2023, where it remained until the first reduction in August 2024 signaled a turning point in UK 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 2026, 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 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.

View daily updates and historical trends for Bank of England Bank Rate. from United Kingdom. Source: Bank of England. Track economic data with YCharts ana…

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.

Overview with Chart & Report: Bank of England Interest Rate Decision is taken by monetary policy committee members and is published two weeks after the meeting. The interest rate decision is one of the most important events

Graph and download economic data for Bank of England Policy Rate in the United Kingdom (BOERUKQ) from Q1 1695 to Q4 2016 about academic data, United Kingdom, and rate.

Policy interest rates in the United States and Europe declined markedly in 2025, with all observed economies implementing multiple rate cuts over the course of the year. In the United States, the federal funds rate was reduced from **** percent at the end of 2024 to **** percent by year-end 2025. Similarly, the European Central Bank lowered its main refinancing rate from **** percent to **** percent, while the Bank of England reduced its bank rate from **** percent to **** percent. Based on forecasts conducted in 2024, both the U.S. federal funds rate and the Bank of England’s policy rate are expected to decline further in 2026. The impact of central bank policy rates The U.S. federal funds effective rate, crucial in determining the interest rate paid by depository institutions, experienced drastic changes in response to the COVID-19 pandemic. The subsequent slight changes in the effective rate reflected the efforts to stimulate the economy and manage economic factors such as inflation. Such fluctuations in the federal funds rate have had a significant impact on the overall economy. The European Central Bank's decision to cut its fixed interest rate in June 2024 for the first time since 2016 marked a significant shift in attitude towards economic conditions. The reasons behind the fluctuations in the ECB's interest rate reflect its mandate to ensure price stability and manage inflation, shedding light on the complex interplay between interest rates and economic factors. Inflation and real interest rates The relationship between inflation and interest rates is critical in understanding the actions of central banks. Central banks' efforts to manage inflation through interest rate adjustments reveal the intricate balance between economic growth and inflation. Additionally, the concept of real interest rates, adjusted for inflation, provides valuable insights into the impact of inflation on the economy.

England Bank Rate History Dataset Description

This document provides a comprehensive description of the England Bank Rate History Dataset, which offers a historical record of official interest rate changes by the Bank of England.

Overview

The England Bank Rate History is a time series dataset that is exceptionally useful for researchers, data scientists, and machine learning practitioners. It contains historical interest rate data sourced directly from the Bank of England Website (www.bankofengland.co.uk). The recorded rate reflects the official interest rate set by the bank, which depending on the era, represents the minimum lending rate, minimum band dealing rate, or the repo rate. This consistency over time makes it a robust resource for various longitudinal economic analyses.

Data Structure

The dataset is structured as follows:

• Total Rows: 258
• Total Columns: 2

Each row represents a specific instance when the official bank rate was changed, providing a chronological progression of England's monetary policy.

Column Details

The England Bank Rate History Dataset consists of the following columns:

• Date Changed (DateTime): This column contains the specific date on which the bank rate was modified. The record spans from January to December . In instances where a specific day or month was not explicitly provided in the source records, the conversion assumed the change occurred on the first of the month.
• Rate (Float): This column contains the official bank rate expressed as a percentage. It captures the numerical value of the interest rate, which has historically ranged from as low as to as high as within this specific timeframe.

Use Cases

The England Bank Rate History Dataset is a valuable resource for both educational and commercial applications. Key use cases include:

1. Predictive Modeling: Utilizing mathematical models and statistical techniques to forecast future interest rate trends based on historical cyclical patterns.
2. Data Visualization: Creating interactive charts, line graphs, and heatmaps to visualize the trajectory of England’s economic policy over several decades.
3. Machine Learning Training: Using the historical data to train and validate machine learning algorithms to understand how interest rate changes correlate with other economic indicators.
4. Feature Engineering: Enhancing broader economic datasets by integrating historical interest rates as a key feature to improve the learning capacity of complex models.

Researchers and developers are encouraged to explore this dataset to add new insights or refine economic models for real-world problem-solving.

In January 2026, 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 2025. In January 2026, Russia maintained the highest interest rate at ** percent, while Japan retained the lowest at **** percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. Sweden had the lowest inflation rate at *** percent in October 2023. In contrast, Russia maintained a high inflation rate of *** percent. These figures align with broader trends observed in late 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 **** percent in September 2019 to *** 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 2024 and 2025.

Key information about United Kingdom Long Term Interest Rate

• United Kingdom Long Term Interest Rate: Month End: United Kingdom: Government Bond Yield: 10 Years was reported at 4.35 % pa in Feb 2026, compared with 4.63 % pa in the previous month.
• UK Long Term Interest Rate data is updated monthly, available from Jan 1979 to Feb 2026.
• The data reached an all-time high of 15.44 % pa in Sep 1981 and a record low of 0.13 % pa in Jul 2020.
• Long Term Interest Rate is reported by reported by CEIC Data.

• In the latest reports, UK Short Term Interest Rate: Month End: ICE LIBOR: 3 Months was reported at 0.09 % pa in Apr 2021.
• The cash rate (Policy Rate: Month End: Base Rate) was set at 3.75 % pa in Feb 2026.
• UK Exchange Rate against USD averaged 0.75 (USD/GBP) in Oct 2025.

In 2026, the federal funds effective rate continued its downward adjustment as the Federal Reserve advanced its policy easing cycle. After the beginning of 2025 at **** percent following a January rate cut, the rate remained unchanged until September 2025, when it was reduced to **** percent. Additional easing followed late in the year, with the rate lowered to **** percent in November and further reduced to **** percent in December, reflecting a sustained shift toward accommodative monetary policy. This phase of rate reductions followed a prolonged period of elevated interest rates that began after the COVID-19 pandemic. In early 2020, the federal funds effective rate was sharply reduced in response to the economic shock caused by the pandemic, falling from **** percent in February 2020 to **** percent in March and reaching **** percent by April. These emergency cuts, combined with the quantitative easing program, were designed to stabilize financial markets and support economic activity. The rate remained near zero for nearly two years before the Federal Reserve initiated a tightening cycle in early 2022, raising the rate from **** percent in April 2022 to a peak of **** percent in August 2023. After holding rates steady for more than a year, the Federal Reserve began reversing course in September 2024, cutting the rate to **** percent, followed by a further reduction to **** percent in December 2024, marking the start of a broader policy pivot that continued through 2025 and into 2026, reaching **** percent in February 2026. What is the federal funds effective rate? The U.S. federal funds effective rate determines the interest rate paid by depository institutions, such as banks and credit unions, that lend reserve balances to other depository institutions overnight. Changing the effective rate in times of crisis is a common way to stimulate the economy, as it has a significant impact on the whole economy, such as economic growth, employment, and inflation. Central bank policy rates Interest rate adjustments following the COVID-19 pandemic reflected a largely coordinated global response. In early 2020, central banks worldwide adopted aggressive monetary easing to counter the economic shock, with the Federal Reserve cutting the federal funds rate from **** percent in February to **** percent by April, in line with actions taken globally. After rates remained near zero through 2021, rising inflation triggered a synchronized tightening cycle beginning in 2022. As inflation moderated, central banks - including the Federal Reserve, the Bank of England, and the European Central Bank - began cutting rates in mid-2024. This shift toward easing broadened in 2025, with interest rates reduced in most countries.

Context

Interest rates are rising! I thought it would be interesting to see how this compares with historical data.

Content

Simple csv file with 2 columns: date changed and interest rate.

Acknowledgements

Data was collected from the Bank of England website.

Between January 2018 and January 2026, 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 January 2026, inflation had moderated to *** percent, indicating a gradual increase in inflation rates in the preceding months. 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 August 2025 and remained at the same rate as of January 2026. 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.

Graph and download economic data for Daily Sterling Overnight Index Average (SONIA) Rate (IUDSOIA) from 1997-01-02 to 2026-03-25 about Sterling, sonia, overnight, average, interest rate, interest, rate, and indexes.

This dataset was sourced from the Bank of England.

Granularity of data: Monthly

Variables Included:

Interest rate on new mortgages in the United Kingdom decreased to 4.09 percent in January from 4.15 percent in December of 2025. This dataset includes a chart with historical data for the United Kingdom Interest Rate on New Mortgages.

Compare UK interest rates and mortgage rates alongside house prices. Interactive charts showing the Bank of England base rate versus 2-year, 5-year, and SVR mortgage rates, with historical HPI trends.

Mortgage rates surged at an unprecedented pace in 2022, with the average 10-year fixed rate doubling between March and December of that year. In response to mounting inflation, the Bank of England implemented a series of rate hikes, pushing borrowing costs steadily higher. By February 2026, the average 10-year fixed mortgage rate stood at **** percent. As financing becomes more expensive, housing demand has cooled, weighing on market sentiment and slowing house price growth. How have the mortgage hikes affected the market? After surging in 2021, the number of residential properties sold fell significantly in 2023, dipping to just above *** million transactions. This contraction in activity also dampened mortgage lending. Between the first quarter of 2023 and the first quarter of 2024, the value of new mortgage loans declined year-on-year for five consecutive quarters. Even as rates eased modestly in 2024 and housing activity picked up slightly, volumes remained well below the highs recorded in 2021. How are higher mortgages impacting homebuyers? For homeowners, the impact is being felt most acutely as fixed-rate deals expire. Mortgage terms in the UK typically range from two to ten years, and many borrowers who locked in historically low rates are now facing significantly higher repayments when refinancing. By the end of 2026, an estimated five million homeowners will see their mortgage deals expire. Roughly two million of these loans are projected to experience a monthly payment increase of up to *** British pounds by 2026, putting additional pressure on household budgets and constraining affordability across the market.

Overview with Chart & Report: Bank of England Monetary Policy Committee Vote Cut is published two weeks after the Bank of England Monetary Policy Committee meeting, together with the interest rate decision. The Committee