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Money and Credit, Effective interest rates ,Banking - Monetary & Financial Stability Report & Statistics


Effective interest rates: October 2015

The effective rate paid on households’ outstanding time deposits decreased by 7bps to 1.52% in October and the rate for households’ new time deposits increased by 4bps to 1.55%. 

The effective rate on the stock of outstanding secured loans (mortgages) decreased by 1bp to 3.03% in October and the new secured loan rate fell to 2.52%, a decrease of 5bps on the month. 




BoE Financial Stability Report, December 2015


The rate on outstanding unsecured personal loans decreased by 3bps to 6.81% in October and the new unsecured personal loan rate decreased by 2bps to 6.95%. The credit card rate (all balances) fell to 10.38%, a 15bps decrease on the month (see Table A for households’ effective rates). 

The effective rate paid on private non-financial corporations’ (PNFCs) outstanding time deposits increased by 1bp to 0.68% in October, and the rate on PNFCs’ new time deposits was unchanged at 0.42%. The rate on PNFCs’ outstanding loans was unchanged at 3.12% in October and the rate on new lending decreased by 3bps to 2.60%


The newest member of the Bank of England's Monetary Policy Committee (MPC) has said growth and wages are the things that will persuade him it is time for an interest rate rise.
Gertjan "Jan" Vlieghe, who joined the rate-setting committee in September, was speaking to the Sunday Times.
He said that he wanted economic growth to "stabilise, or even pick up a bit" before rates rise.

He also wanted a clearer "direction of travel" towards higher growth in wages.

The job of the MPC's nine members is to set interest rates at a level that will keep the rate of inflation close to the target of 2%.

Mr Vlieghe said he was "relaxed" about waiting a little longer before starting to raise rates and that he expected rates to remain lower in the long term as a result of continuing high debts and demographics.


The Bank of England's key interest rate has been at its record low level of 0.5% since early 2009.



Bank of England - Open Forum 2015

Plenary: The role of financial markets in the economy



Bank of England Effective interest rates - October 2015 


Bankstats (Monetary & Financial Statistics) - October 2015

Money and Credit - October 2015


Further Reading 
BoE forecasts for inflation relative to the market curve of interest rate, in particular its projection at the two-year horizon