UK economy overview

Last updated: 18 June 2020

Interest rates - Official Bank Rate

Bank rate 0.1%
Quantative Easing

The committee voted unanimously to maintain the Bank Rate at 0.1%.

The Committee voted to continue with the existing programme of maining the stock of sterling non-financial investment grade corporate purchases at £20 billion.

The committee also voted 9-0 to continue with its existing program of UK government bond purchases, financed by the issuance of central bank reserves, at a target stock of £875 billion. 

Last decision 17th March 2021. Voting was 9-0.
Next decision February 2021
Recent movements 21 June 2018: 0.5% to 0.75%, 30 Jan 2020: 0.75% to 0.25%, 11 March 2020: 0.25% to 0.1%. 

UK Inflation

CPIH inflation

CPI inflation

0.8% 12 month rate. Dec 2020.  The largest contribution to CPIH for this 12 month period was from recreation and culture.

0.5% in May 2020, down from 0.8% in April

Government CPI target 2.0%
Upward pressure Recreation and culture 0.23%
Downward pressure Covid-19 restrictions.
Scottish house Price inflation 1.6% (12 months to January 2020) . The average price of a property in Scotland was £152,121.
UK house price inflation 1.3% (12 months to January 2020). The average price of a residential property in England is £247,000 and properties in England saw an increase of 1.1% over the 12 months to January 2020. Northern Ireland saw an increase of 2.5% over the 12 months to January 2020. The average residential price in Northern Ireland as of January 2020 was £142,000.


GDP Headlines

UK GDP fell by in the three months to April 2020

UK GDP fell by 20.40% in April 2020, following a fall of 5.8% in March 2020

Downward pressure February 2020 to April 2020. General Covid19 restrictions led to the downturn. Construction (-18.2%), Accommodation (-40.9%), Transport and storage (-18.3%), Wholesale retyail and trade (-14.5%).
Upward  pressure The only sector in positive teritory was Public administration and defence 0.2%.
Q4 2020 GDP  
Note For more information go to Office for National Statistics GDP

Retail Sales

Retail sales  The volume of retail sales in April 2020 fell by a record 18.1% following a 5.2% fall in March 2020.  
Headlines All sectors saw a monthly decline in volume sales except for a record increase in sales for non-store retailing at 18.0% and a continued increase in sales for alcohol stores at 2.3%.
The volume of clothing sales in April 2020 plummeted by 50.2% when compared with March 2020, which had already fallen by 34.9% on the previous month.
Online retail  The proportion spent online soared to the highest on record in April 2020 at 30.7%, which compares with the 19.1% reported in April 2019.