Bank of England holds policy rate unchanged

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The thorny question of what the Bank of England should do with the Base Rate has been answered today. Nothing.

According to the BoE monetary meeting report published today, the central bank voted 7-2 to hold the interest rate unchanged at 5.25 percent. This means that the Base Rate has been held at a restrictive level for almost three quarters now. Most of the dovish forecasts made at the start of the year have not really materialised.

But what about the rest of 2024, will the UK central bank start to slash interest rate like Sweden’s Riksbank earlier this week? Perhaps. According to the MPC report, they predicted that “demand growth is expected to remain weaker than potential supply growth” and that “a margin of economic slack is projected to emerge during 2024 and 2025.”

On inflation, the BoE wrote that the “CPI inflation is expected to return to close to the 2% target in the near term, but to increase slightly in the second half of this year, to around 2½%, owing to the unwinding of energy-related base effects.”

In other words, they have not really closed the door on rate cuts despite holding the rate steady today. But neither will the BoE cut the borrowing cost by too much. Unless, of course, the economy makes a decisive turn southwards.

Given this somewhat negative economic outlook, Sterling took a modest hit, especially against the Dollar. The rate has cut through the 1.245 support which raises the possibility to touching 1.240 in the days ahead (see below).

Historic UK Bank of England Base Interest Rates

UK Base Interest Rates

A chart displaying the historic UK base rate (interest rates)

UK Bank of England Base RateInterest Rate Percentage
03-Aug-235.25
22-Jun-235
11-May-234.5
23-Mar-234.25
02-Feb-234
15-Dec-223.5
03-Nov-223
22-Sep-222.25
04-Aug-221.75
16-Jun-221.25
05-May-221
17-Mar-220.75
03-Feb-220.5
16-Dec-210.25
19-Mar-200.1
11-Mar-200.25
02-Aug-180.75
02-Nov-170.5
04-Aug-160.25
05-Mar-090.5
05-Feb-091
08-Jan-091.5
04-Dec-082
06-Nov-083
08-Oct-084.5
10-Apr-085
07-Feb-085.25
06-Dec-075.5
05-Jul-075.75
10-May-075.5
11-Jan-075.25
09-Nov-065
03-Aug-064.75
04-Aug-054.5
05-Aug-044.75
10-Jun-044.5
06-May-044.25
05-Feb-044
06-Nov-033.75
10-Jul-033.5
06-Feb-033.75
08-Nov-014
04-Oct-014.5
18-Sep-014.75
02-Aug-015
10-May-015.25
05-Apr-015.5
08-Feb-015.75
10-Feb-006
13-Jan-005.75
04-Nov-995.5
08-Sep-995.25
10-Jun-995
08-Apr-995.25
04-Feb-995.5
07-Jan-996
10-Dec-986.25
05-Nov-986.75
08-Oct-987.25
04-Jun-987.5
06-Nov-977.25
07-Aug-977
10-Jul-976.75
06-Jun-976.5
06-May-976.25
30-Oct-965.94
06-Jun-965.69
08-Mar-965.94
18-Jan-966.13
13-Dec-956.38
02-Feb-956.63
07-Dec-946.13
12-Sep-945.63
08-Feb-945.13
23-Nov-935.38
26-Jan-935.88
13-Nov-926.88
16-Oct-927.88
22-Sep-928.88
05-May-929.88
04-Sep-9110.38
12-Jul-9110.88
24-May-9111.38
12-Apr-9111.88
22-Mar-9112.38
27-Feb-9112.88
13-Feb-9113.38
08-Oct-9013.88
06-Oct-8914.88
08-Sep-8913.75
04-Sep-8913.88
31-Aug-8913.84
25-May-8913.75
25-Nov-8812.88
25-Aug-8811.88
08-Aug-8810.88
21-Jul-8810.38
07-Jul-889.88
24-Jun-888.88
10-Jun-888.38
03-Jun-887.88
17-May-887.38
08-Apr-887.88
17-Mar-888.38
01-Feb-888.88
03-Dec-878.38
04-Nov-878.88
23-Oct-879.38
06-Aug-879.88
08-May-878.88
28-Apr-879.38
18-Mar-879.88
09-Mar-8710.38
15-Oct-8610.88
23-May-869.88
18-Apr-8610.38
11-Apr-8610.88
19-Mar-8611.38
15-Jan-8612.38
26-Jul-8511.38
11-Jul-8511.88
19-Apr-8512.38
28-Mar-8512.88
20-Mar-8513.38
28-Jan-8513.88
14-Jan-8511.88
23-Nov-849.5
19-Nov-849.75
05-Nov-8410
17-Aug-8410.5
16-Aug-8410.75
09-Aug-8411
08-Aug-8411.5
11-Jul-8412
06-Jul-8410
29-Jun-848.88
10-May-849.06
14-Mar-848.56
07-Mar-848.81
03-Oct-839.06
10-Aug-839.56
09-Aug-839.44
14-Jun-839.56
13-Jun-839.81
14-Apr-8310.06
13-Apr-8310.31
15-Mar-8310.56
12-Jan-8311
26-Nov-8210
02-Nov-829.13
01-Nov-829.38
12-Oct-829.63
30-Sep-8210.13
29-Sep-8210.25
28-Sep-8210.38
27-Sep-8210.5
27-Aug-8210.63
26-Aug-8210.88
25-Aug-8211
24-Aug-8211.13
17-Aug-8211.25
16-Aug-8211.38
04-Aug-8211.5
02-Aug-8211.56
30-Jul-8211.63
29-Jul-8211.75
28-Jul-8211.81
26-Jul-8211.94
21-Jul-8212.06
13-Jul-8212.13
12-Jul-8212.25
09-Jul-8212.5
08-Jun-8212.63
20-Apr-8213.13
19-Apr-8213
16-Apr-8213.13
10-Mar-8213.25
25-Feb-8213.63
22-Feb-8213.81
22-Jan-8213.88
21-Jan-8214
20-Jan-8214.13
19-Jan-8214.25
18-Jan-8214.31
04-Dec-8114.38
25-Nov-8114.56
09-Nov-8114.63
06-Nov-8115.06
28-Oct-8115.13
12-Oct-8115
15-Sep-8114
25-Aug-8112.69
11-Mar-8112
25-Nov-8014
03-Jul-8016
15-Nov-7917
13-Jun-7914
05-Apr-7912
01-Mar-7913
08-Feb-7914
09-Nov-7812.5
08-Jun-7810
15-May-789
08-May-788.75
12-Apr-787.5
09-Jan-786.5
28-Nov-777
17-Oct-775
10-Oct-775.5
19-Sep-776
12-Sep-776.5
15-Aug-777
08-Aug-777.5
16-May-778
02-May-778.25
25-Apr-778.75
18-Apr-779
12-Apr-779.25
31-Mar-779.5
21-Mar-7710.5
10-Mar-7711
03-Feb-7712
31-Jan-7712.25
24-Jan-7713.25
10-Jan-7714
29-Dec-7614.25
20-Dec-7614.5
22-Nov-7614.75
07-Oct-7615
13-Sep-7613
24-May-7611.5
26-Apr-7610.5
08-Mar-769
01-Mar-769.25
09-Feb-769.5
02-Feb-7610
26-Jan-7610.5
19-Jan-7610.75
05-Jan-7611
29-Dec-7511.25
01-Dec-7511.5
17-Nov-7511.75
06-Oct-7512
28-Jul-7511
05-May-7510
21-Apr-759.75
24-Mar-7510
10-Mar-7510.25
17-Feb-7510.5
10-Feb-7510.75
27-Jan-7511
20-Jan-7511.25

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