UK Interest Rate History / Graph & Facts

Quick UK Interest Rate Stats
Current UK Interest Rate0.75%
Last movementAugust 2018
Highest on record 15.00% in Oct 1989
Show all dates
15.00% in Nov 1989
15.00% in Dec 1989
15.00% in Jan 1990
15.00% in Feb 1990
15.00% in Mar 1990
15.00% in Apr 1990
15.00% in May 1990
15.00% in Jun 1990
15.00% in Jul 1990
15.00% in Aug 1990
15.00% in Sep 1990
Lowest on record 0.25% in Aug 2016
Show all dates
0.25% in Sep 2016
0.25% in Oct 2016
0.25% in Nov 2016
0.25% in Dec 2016
0.25% in Jan 2017
0.25% in Feb 2017
0.25% in Mar 2017
0.25% in Apr 2017
0.25% in May 2017
0.25% in Jun 2017
0.25% in Jul 2017
0.25% in Aug 2017
0.25% in Sep 2017
0.25% in Oct 2017

The UK base rate is the interest rate at which commercial banks, like Barcleys and Natwest, borrow from the Bank of England.

In theory, lower the interest rate, the cheaper loans become for borrowers, because generally, lenders will base their rates according to the base rate. Similarly, the base rate will generally determine the interest rate at which banks will set their savings account products.

Essentially, low interest rates are generally good for borrowers, but bad for savers.

Below is a graph showing the change in the Bank of England base rate since January 1985.

MonthBase RateChange
Sep 2018 0.75% 0.00
Aug 2018 0.75% 0.25
Jul 2018 0.50% 0.00
Jun 2018 0.50% 0.00
May 2018 0.50% 0.00
Apr 2018 0.50% 0.00
Mar 2018 0.50% 0.00
Feb 2018 0.50% 0.00
Jan 2018 0.50% 0.00
Dec 2017 0.50% 0.00
Nov 2017 0.50% 0.25
Oct 2017 0.25% 0.00
Sep 2017 0.25% 0.00
Aug 2017 0.25% 0.00
Jul 2017 0.25% 0.00
Jun 2017 0.25% 0.00
May 2017 0.25% 0.00
Apr 2017 0.25% 0.00
Mar 2017 0.25% 0.00
Feb 2017 0.25% 0.00
Jan 2017 0.25% 0.00
Dec 2016 0.25% 0.00
Nov 2016 0.25% 0.00
Oct 2016 0.25% 0.00
Sep 2016 0.25% 0.00
Aug 2016 0.25% 0.25
Jul 2016 0.50% 0.00
Jun 2016 0.50% 0.00
May 2016 0.50% 0.00
Apr 2016 0.50% 0.00
Mar 2016 0.50% 0.00
Feb 2016 0.50% 0.00
Jan 2016 0.50% 0.00
Dec 2015 0.50% 0.00
Nov 2015 0.50% 0.00
Oct 2015 0.50% 0.00
Sep 2015 0.50% 0.00
Aug 2015 0.50% 0.00
Jul 2015 0.50% 0.00
Jun 2015 0.50% 0.00
May 2015 0.50% 0.00
Apr 2015 0.50% 0.00
Mar 2015 0.50% 0.00
Feb 2015 0.50% 0.00
Jan 2015 0.50% 0.00
Dec 2014 0.50% 0.00
Nov 2014 0.50% 0.00
Oct 2014 0.50% 0.00
Sep 2014 0.50% 0.00
Aug 2014 0.50% 0.00
Jul 2014 0.50% 0.00
Jun 2014 0.50% 0.00
May 2014 0.50% 0.00
Apr 2014 0.50% 0.00
Mar 2014 0.50% 0.00
Feb 2014 0.50% 0.00
Jan 2014 0.50% 0.00
Dec 2013 0.50% 0.00
Nov 2013 0.50% 0.00
Oct 2013 0.50% 0.00
Sep 2013 0.50% 0.00
Aug 2013 0.50% 0.00
Jul 2013 0.50% 0.00
Jun 2013 0.50% 0.00
May 2013 0.50% 0.00
Apr 2013 0.50% 0.00
Mar 2013 0.50% 0.00
Feb 2013 0.50% 0.00
Jan 2013 0.50% 0.00
Dec 2012 0.50% 0.00
Nov 2012 0.50% 0.00
Oct 2012 0.50% 0.00
Sep 2012 0.50% 0.00
Aug 2012 0.50% 0.00
Jul 2012 0.50% 0.00
Jun 2012 0.50% 0.00
May 2012 0.50% 0.00
Apr 2012 0.50% 0.00
Mar 2012 0.50% 0.00
Feb 2012 0.50% 0.00
Jan 2012 0.50% 0.00
Dec 2011 0.50% 0.00
Nov 2011 0.50% 0.00
Oct 2011 0.50% 0.00
Sep 2011 0.50% 0.00
Aug 2011 0.50% 0.00
Jul 2011 0.50% 0.00
Jun 2011 0.50% 0.00
May 2011 0.50% 0.00
Apr 2011 0.50% 0.00
Mar 2011 0.50% 0.00
Feb 2011 0.50% 0.00
Jan 2011 0.50% 0.00
Dec 2010 0.50% 0.00
Nov 2010 0.50% 0.00
Sep 2010 0.50% 0.00
Aug 2010 0.50% 0.00
Jul 2010 0.50% 0.00
Jun 2010 0.50% 0.00
May 2010 0.50% 0.00
Apr 2010 0.50% 0.00
Mar 2010 0.50% 0.00
Feb 2010 0.50% 0.00
Jan 2010 0.50% 0.00
Dec 2009 0.50% 0.00
Nov 2009 0.50% 0.00
Oct 2009 0.50% 0.00
Sep 2009 0.50% 0.00
Aug 2009 0.50% 0.00
Jul 2009 0.50% 0.00
Jun 2009 0.50% 0.00
May 2009 0.50% 0.00
Apr 2009 0.50% 0.50
Feb 2009 1.00% 0.50
Jan 2009 1.50% 0.50
Dec 2008 2.00% 1.00
Nov 2008 3.00% 1.50
Oct 2008 4.50% 0.50
Sep 2008 5.00% 0.00
Aug 2008 5.00% 0.00
Jul 2008 5.00% 0.00
Jun 2008 5.00% 0.00
May 2008 5.00% 0.00
Apr 2008 5.00% 0.25
Mar 2008 5.25% 0.00
Feb 2008 5.25% 0.25
Jan 2008 5.50% 0.00
Dec 2007 5.50% 0.25
Nov 2007 5.75% 0.00
Oct 2007 5.75% 0.00
Sep 2007 5.75% 0.00
Jul 2007 5.75% 0.25
Jun 2007 5.50% 0.00
May 2007 5.50% 0.25
Apr 2007 5.25% 0.00
Mar 2007 5.25% 0.00
Feb 2007 5.25% 0.00
Jan 2007 5.25% 0.25
Dec 2006 5.00% 0.00
Nov 2006 5.00% 0.25
Oct 2006 4.75% 0.00
Sep 2006 4.75% 0.00
Aug 2006 4.75% 0.25
Jul 2006 4.50% 0.00
Jun 2006 4.50% 0.00
May 2006 4.50% 0.00
Apr 2006 4.50% 0.00
Mar 2006 4.50% 0.00
Feb 2006 4.50% 0.00
Jan 2006 4.50% 0.00
Dec 2005 4.50% 0.00
Nov 2005 4.50% 0.00
Oct 2005 4.50% 0.00
Sep 2005 4.50% 0.00
Aug 2005 4.50% 0.25
Jul 2005 4.75% 0.00
Jun 2005 4.75% 0.00
May 2005 4.75% 0.00
Apr 2005 4.75% 0.00
Mar 2005 4.75% 0.00
Feb 2005 4.75% 0.00
Jan 2005 4.75% 0.00
Dec 2004 4.75% 0.00
Nov 2004 4.75% 0.00
Oct 2004 4.75% 0.00
Sep 2004 4.75% 0.00
Aug 2004 4.75% 0.25
Jul 2004 4.50% 0.00
Jun 2004 4.50% 0.25
May 2004 4.25% 0.25
Apr 2004 4.00% 0.00
Mar 2004 4.00% 0.00
Feb 2004 4.00% 0.25
Jan 2004 3.75% 0.00
Dec 2003 3.75% 0.00
Nov 2003 3.75% 0.25
Oct 2003 3.50% 0.00
Sep 2003 3.50% 0.00
Aug 2003 3.50% 0.00
Jul 2003 3.50% 0.25
Jun 2003 3.75% 0.00
May 2003 3.75% 0.00
Apr 2003 3.75% 0.00
Mar 2003 3.75% 0.00
Feb 2003 3.75% 0.25
Jan 2003 4.00% 0.00
Dec 2002 4.00% 0.00
Nov 2002 4.00% 0.00
Oct 2002 4.00% 0.00
Sep 2002 4.00% 0.00
Aug 2002 4.00% 0.00
Jul 2002 4.00% 0.00
Jun 2002 4.00% 0.00
May 2002 4.00% 0.00
Apr 2002 4.00% 0.00
Mar 2002 4.00% 0.00
Feb 2002 4.00% 0.00
Jan 2002 4.00% 0.00
Dec 2001 4.00% 0.00
Nov 2001 4.00% 0.50
Oct 2001 4.50% 0.25
Sep 2001 4.75% 0.25
Aug 2001 5.00% 0.25
Jul 2001 5.25% 0.00
Jun 2001 5.25% 0.00
May 2001 5.25% 0.25
Apr 2001 5.50% 0.25
Mar 2001 5.75% 0.00
Feb 2001 5.75% 0.25
Jan 2001 6.00% 0.00
Dec 2000 6.00% 0.00
Nov 2000 6.00% 0.00
Oct 2000 6.00% 0.00
Sep 2000 6.00% 0.00
Aug 2000 6.00% 0.00
Jul 2000 6.00% 0.00
Jun 2000 6.00% 0.00
May 2000 6.00% 0.00
Apr 2000 6.00% 0.00
Mar 2000 6.00% 0.00
Feb 2000 6.00% 0.25
Jan 2000 5.75% 0.25
Dec 1999 5.50% 0.00
Nov 1999 5.50% 0.25
Oct 1999 5.25% 0.00
Sep 1999 5.25% 0.25
Aug 1999 5.00% 0.00
Jul 1999 5.00% 0.00
Jun 1999 5.00% 0.25
May 1999 5.25% 0.00
Apr 1999 5.25% 0.00
Mar 1999 5.25% 0.25
Feb 1999 5.50% 0.50
Jan 1999 6.00% 0.25
Dec 1998 6.25% 0.50
Nov 1998 6.75% 0.50
Oct 1998 7.25% 0.25
Sep 1998 7.50% 0.00
Aug 1998 7.50% 0.00
Jul 1998 7.50% 0.00
Jun 1998 7.50% 0.25
May 1998 7.25% 0.00
Apr 1998 7.25% 0.00
Mar 1998 7.25% 0.00
Feb 1998 7.25% 0.00
Jan 1998 7.25% 0.00
Dec 1997 7.25% 0.00
Nov 1997 7.25% 0.25
Oct 1997 7.00% 0.00
Sep 1997 7.00% 0.00
Aug 1997 7.00% 0.25
Jul 1997 6.75% 0.25
Jun 1997 6.50% 0.25
May 1997 6.25% 0.25
Apr 1997 6.00% 0.00
Mar 1997 6.00% 0.00
Feb 1997 6.00% 0.00
Jan 1997 6.00% 0.00
Dec 1996 6.00% 0.00
Nov 1996 6.00% 0.00
Oct 1996 6.00% 0.25
Sep 1996 5.75% 0.00
Aug 1996 5.75% 0.00
Jul 1996 5.75% 0.00
Jun 1996 5.75% 0.25
May 1996 6.00% 0.00
Apr 1996 6.00% 0.00
Mar 1996 6.00% 0.25
Feb 1996 6.25% 0.00
Jan 1996 6.25% 0.25
Dec 1995 6.50% 0.25
Nov 1995 6.75% 0.00
Oct 1995 6.75% 0.00
Sep 1995 6.75% 0.00
Aug 1995 6.75% 0.00
Jul 1995 6.75% 0.00
Jun 1995 6.75% 0.00
May 1995 6.75% 0.00
Apr 1995 6.75% 0.00
Mar 1995 6.75% 0.00
Feb 1995 6.75% 0.50
Jan 1995 6.25% 0.00
Dec 1994 6.25% 0.50
Nov 1994 5.75% 0.00
Oct 1994 5.75% 0.00
Sep 1994 5.75% 0.50
Aug 1994 5.25% 0.00
Jul 1994 5.25% 0.00
Jun 1994 5.25% 0.00
May 1994 5.25% 0.00
Apr 1994 5.25% 0.00
Mar 1994 5.25% 0.00
Feb 1994 5.25% 0.25
Jan 1994 5.50% 0.00
Dec 1993 5.50% 0.00
Nov 1993 5.50% 0.50
Oct 1993 6.00% 0.00
Sep 1993 6.00% 0.00
Aug 1993 6.00% 0.00
Jul 1993 6.00% 0.00
Jun 1993 6.00% 0.00
May 1993 6.00% 0.00
Apr 1993 6.00% 0.00
Mar 1993 6.00% 0.00
Feb 1993 6.00% 0.00
Jan 1993 6.00% 1.00
Dec 1992 7.00% 0.00
Nov 1992 7.00% 1.00
Oct 1992 8.00% 1.00
Sep 1992 9.00% 1.00
Aug 1992 10.00% 0.00
Jul 1992 10.00% 0.00
Jun 1992 10.00% 0.00
May 1992 10.00% 0.50
Apr 1992 10.50% 0.00
Mar 1992 10.50% 0.00
Feb 1992 10.50% 0.00
Jan 1992 10.50% 0.00
Dec 1991 10.50% 0.00
Nov 1991 10.50% 0.00
Oct 1991 10.50% 0.00
Sep 1991 10.50% 0.50
Aug 1991 11.00% 0.00
Jul 1991 11.00% 0.50
Jun 1991 11.50% 0.00
May 1991 11.50% 0.50
Apr 1991 12.00% 0.50
Mar 1991 12.50% 0.50
Feb 1991 13.00% 1.00
Jan 1991 14.00% 0.00
Dec 1990 14.00% 0.00
Nov 1990 14.00% 0.00
Oct 1990 14.00% 1.00
Sep 1990 15.00% 0.00
Aug 1990 15.00% 0.00
Jul 1990 15.00% 0.00
Jun 1990 15.00% 0.00
May 1990 15.00% 0.00
Apr 1990 15.00% 0.00
Mar 1990 15.00% 0.00
Feb 1990 15.00% 0.00
Jan 1990 15.00% 0.00
Dec 1989 15.00% 0.00
Nov 1989 15.00% 0.00
Oct 1989 15.00% 1.00
Sep 1989 14.00% 0.00
Aug 1989 14.00% 0.00
Jul 1989 14.00% 0.00
Jun 1989 14.00% 0.00
May 1989 14.00% 1.00
Apr 1989 13.00% 0.00
Mar 1989 13.00% 0.00
Feb 1989 13.00% 0.00
Jan 1989 13.00% 0.00
Dec 1988 13.00% 0.00
Nov 1988 13.00% 1.00
Oct 1988 12.00% 0.00
Sep 1988 12.00% 0.00
Aug 1988 12.00% 1.50
Jul 1988 10.50% 1.00
Jun 1988 9.50% 2.00
May 1988 7.50% 0.50
Apr 1988 8.00% 0.50
Mar 1988 8.50% 0.50
Feb 1988 9.00% 0.50
Jan 1988 8.50% 0.00
Dec 1987 8.50% 0.50
Nov 1987 9.00% 0.50
Oct 1987 9.50% 0.50
Sep 1987 10.00% 0.00
Aug 1987 10.00% 1.00
Jul 1987 9.00% 0.00
Jun 1987 9.00% 0.00
May 1987 9.00% 0.50
Apr 1987 9.50% 0.50
Mar 1987 10.00% 1.00
Feb 1987 11.00% 0.00
Jan 1987 11.00% 0.00
Dec 1986 11.00% 0.00
Nov 1986 11.00% 0.00
Oct 1986 11.00% 1.00
Sep 1986 10.00% 0.00
Aug 1986 10.00% 0.00
Jul 1986 10.00% 0.00
Jun 1986 10.00% 0.00
May 1986 10.00% 0.50
Apr 1986 10.50% 1.00
Mar 1986 11.50% 0.00
Feb 1986 11.50% 0.00
Jan 1986 11.50% 0.00
Dec 1985 11.50% 0.00
Nov 1985 11.50% 0.00
Oct 1985 11.50% 0.00
Sep 1985 11.50% 0.00
Aug 1985 11.50% 0.00
Jul 1985 11.50% 1.00
Jun 1985 12.50% 0.00
May 1985 12.50% 0.25
Apr 1985 12.75% 0.75
Mar 1985 13.50% 0.50
Feb 1985 14.00% 0.00
Jan 1985 14.00% 0.00

Who determines interest rates?

The Bank of England’s Monetary Policy Committee (MPC) decides the fate of interest rates. They meet up every month and decide what the rates will be in the foreseen future.

Who forms the Monetary Policy Committee (MPC)?

The MPC is made up of the governor of the Bank, two deputy governors, a chief economist, a marketing director and four external members, appointed by the chancellor for a three year term. Each member has a vote of equal weight.

So they decide how much interest I pay?

Yes, that’s right. Initially, before 1997, it was the Treasury that set interest rates, but Gordon Brown granted the MPC powers to set rates when Labour came to power in 1997.

The idea of handing the responsibility over to the MPC was to prevent governments from using interest rates as a political tool. Additionally, to give a degree of independence between the economy and political concerns.

However, the government has the right to instruct the Bank on what rate to set when needed.

What is the main purpose of the MPC?

The Monetary Policy Committees (MPC) main role is to control inflation according to the government’s inflation target, which is set each year in the Budget.

Why do interest rates increase?

Essentially, rates are increased to control inflation. The concern is that rising prices will fuel higher pay demands which could push prices yet higher in an inflationary spiral.

Rates are increasing to encourage saving and discourage borrowing because that’s what the bank of england think will keep inflation at a sensible level.

What is inflation?

Inflation is an increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every pound you own buys a smaller percentage of a good or service. Basically, things are getting more expensive.

How do interest rates affect the housing market?

Changes in interest rates affect mortgage rates, either instantly or in the future if you are in a fixed-rate or discount deal. Depending on which way the change went, your mortgage payments will either increase or decrease.

Interest rates can also affect property prices. If interest rates rise, the property market could lose its appeal because mortgages become more expensive, consequently having direct impact on property prices. Of course, the opposite affect could happen if interest rates lower.

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