Wednesday, June 22, 2011

Long historical view of Bank base rate

The Bank Rate 1700-2011

The chart on p3 shows how extraordinary the current 0.5% base rate is when viewed from a long historical context. Base rate has been between 3% and 5% for almost all of the Bank of England's 300 year history. It must surely move back there, if not higher, within a very few years. This chart would I think be a good addition to the 'Graphs' section of this web site - how about it, moderators?

Posted by monty032 @ 11:05 AM (1910 views)
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3 thoughts on “Long historical view of Bank base rate

  • financial planner says:

    Assuming they print again, going into 2015 election, 5% rates will be expected.
    15-20% RPI by 2020, bank rate of 10-15%…

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  • what is more interesting is the fact that the extraordinary period of super high interest rates was preceded by an extended period of historically low (2%) rates. current low rates may be around for decades, but however long they persist I think there is an almost certainty that they will be followed by extraordinarily high interest rates.

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  • inbreda – that was my initial thought, but if you look at the time lag between the two, I think it would be safe to assume that the high rates were not a direct result of the period of low rates. Nice try though.

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