Bank Rate

E96655

Bank Rate is the United Kingdom’s official policy interest rate set by the Bank of England to influence borrowing costs, inflation, and overall economic activity.

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Observed surface forms (1)

Surface form Occurrences
Bank of England base rate 1

Statements (48)

Predicate Object
instanceOf benchmark interest rate
monetary policy interest rate
policy rate
affects business loan rates in the United Kingdom
commercial bank deposit rates
commercial bank lending rates
consumer loan rates in the United Kingdom
government bond yields in the United Kingdom
money market rates in the United Kingdom
mortgage interest rates in the United Kingdom
alsoKnownAs base rate
official Bank Rate
official policy rate
announcedBy Monetary Policy Committee
surface form: Bank of England Monetary Policy Committee
announcedThrough Bank of England press conferences
Monetary Policy Summary
minutes of the Monetary Policy Committee
appliesToCurrency Pound sterling
changedBy lowering the rate
raising the rate
changeEffect higher Bank Rate tends to reduce inflationary pressure
lower Bank Rate tends to stimulate borrowing and spending
country United Kingdom
decisionFrequency usually every six weeks
determinedBy Monetary Policy Committee
surface form: Monetary Policy Committee of the Bank of England
historicalPredecessor Bank Rate self-linksurface differs
surface form: Bank of England base rate

Minimum Lending Rate
influences asset prices in the United Kingdom
exchange rate of the pound sterling
expectations of future inflation
legalBasis Bank of England Act 1998
linkedTo UK inflation target
monitoredBy businesses in the United Kingdom
financial markets
households in the United Kingdom
partOf United Kingdom monetary policy framework
policyObjective price stability
supporting the economic policy of the UK government
referenceFor pricing of many variable-rate loans in the United Kingdom
some savings products in the United Kingdom
regulates cost of central bank reserves to commercial banks
setBy Bank of England
timeHorizonOfImpact short to medium term
usedFor anchoring short-term interest rates
controlling inflation
influencing borrowing costs
influencing economic activity
signalling monetary policy stance

Referenced by (2)

Full triples — surface form annotated when it differs from this entity's canonical label.

Bank Rate historicalPredecessor Bank Rate self-linksurface differs
this entity surface form: Bank of England base rate