Description
The Bank of England's benchmark interest rate, known as the Bank Rate, is set and published by the Bank of England (BoE) through its Monetary Policy Committee (MPC). This rate is the interest rate at which the BoE lends to commercial banks overnight and has a significant impact on economic activity and inflation in the UK. When the economy is overheating or inflationary pressures are rising, the BoE typically raises the rate to curb demand. Conversely, the rate is lowered to stimulate the economy during slowdowns or when inflation is too low.
The BoE's Monetary Policy Committee meets eight times a year.