What it measures
Bank Rate is the rate the Bank of England pays on the reserves commercial banks hold with it. It influences what banks charge for loans and pay on savings across the UK.
Who publishes it and when
The Monetary Policy Committee announces its decision eight times a year at 12:00 London time, together with the Monetary Policy Summary and the minutes of the meeting. At some meetings the Bank also publishes its Monetary Policy Report with new forecasts.
How it is put together
The Committee has nine members: the Governor, three Deputy Governors, the Chief Economist and four external members. Each member votes, and the vote split is published with the decision. The Committee's job is to meet the government's 2% inflation target.
What traders watch
Traders compare the vote split with expectations: for example, a decision to hold with more members voting for a cut than expected is often read as a step towards a cut. They also read the guidance in the summary and, at report meetings, the new forecasts.
How markets have usually reacted
A rise, or more votes for a rise than expected, has often lifted the pound and UK gilt yields; a cut, or more votes for a cut, has often weighed on them. The FTSE 100, whose companies earn much of their income abroad, has sometimes moved the opposite way to the pound.
Common mistakes
- Reacting to the rate alone. When the decision itself is expected, the statement, the vote and the press conference usually decide the move.
- Trading the first seconds: spreads widen and prices can jump in both directions before settling.
- Forgetting the press conference: it starts after the statement and can move the market a second time.
How a higher or lower figure is usually read
A rate rise is usually read as supportive for the pound and a cut as negative. When no change is expected, the vote split and guidance matter most. Not a signal.
Release history
No past releases recorded yet.
Related news
- UK Consumer Price Index (CPI)
- UK GDP (monthly)
- UK Unemployment Rate
- ECB Rate Decision (deposit facility rate)
- Economic calendar: every release this week in your time zone
- Lot size calculator: keep your risk the same around news
- How to use an economic calendar: what happens around a release, and how to plan for it
Trading involves a high risk of loss. This page is information and education, not advice or a signal to trade. See the Risk Disclaimer.
Official source
Calendar data: www.bankofengland.co.uk
Published by Bank of England, Monetary Policy Committee (MPC): www.bankofengland.co.uk