Money in United Kingdom

United Kingdom - Money
BoE hikes by 50 basis points in December
On 15 December, the Bank of England (BoE) increased the bank rate from 3.00% to 3.50%, marking the ninth successive rate hike.
The Bank’s decision to tighten its stance was driven by the desire to tame inflation, which is currently in double digits and more than five times the Bank of England’s 2.0% target. The tight labor market and recent acceleration in private-sector pay growth also underpinned the Bank’s decision.
The Bank reiterated its previous guidance that “further increases in Bank Rate may be required for a sustainable return of inflation to target”. The Consensus is for the Bank Rate to peak at slightly over 4% in mid-2023, with forecasts for the peak level ranging from 3.75% to 4.50%.
Analysts at Goldman Sachs are at the hawkish end of our panel:
“Looking ahead, we continue to expect another 50bp hike in February, followed by 25bp hikes in March and May for a terminal rate of 4.5%.”
ING’s James Smith is more dovish:
“For now, our best guess is the Committee implements another 50bp hike in February before calling it a day. The hawks can continue to point to 6% wage growth and the fact that core services inflation is running higher than expected in November. But today’s meeting is a further demonstration of the delicate balancing act facing the BoE, between mitigating the risks of a tight jobs market on the one hand against mounting concerns about the housing market and the health of corporate borrowers on the other. We expect Bank Rate to peak at 4% in the new year.”
United Kingdom - Money Data
2015 | 2016 | 2017 | 2018 | 2019 | |
---|---|---|---|---|---|
Money (annual variation in %) | 5.9 | 3.1 | 3.1 | 3.8 | 3.9 |
United Kingdom Money Chart

Source: Bank of England (BoE).
United Kingdom Facts
Value | Change | Date | |
---|---|---|---|
Bond Yield | 0.83 | -3.04 % | Jan 01 |
Exchange Rate | 1.33 | -0.35 % | Jan 01 |
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Economic News
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United Kingdom: Composite PMI deteriorates in January
January 24, 2023
The S&P Global/CIPS Flash Composite Purchasing Managers’ Index (PMI) came in at 47.8 in January, down from December's 49.0.
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United Kingdom: Consumer confidence eases in January
January 23, 2023
Consumer confidence fell to minus 45.0 in January from December's minus 42.0.
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United Kingdom: Inflation falls to lowest level since September in December
January 18, 2023
Inflation dropped to 10.5% in December from November’s 10.7%.
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United Kingdom: Labor market remains an economic bright spot in Q4
January 17, 2023
According to the ONS, in September–November the unemployment rate registered 3.7%, while the redundancy rate was below pre-pandemic levels.
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United Kingdom: Economic activity growth slows in November
January 13, 2023
GDP rose 0.1% month-on-month in seasonally-adjusted terms in November (October: +0.5% mom).