Rate data from each central bank's own statistics API (or FRED where a bank has no clean daily series — see the source link under each chart). Headlines from Google News. Commentary below each bank is Adam's own opinion, not fetched data or investment advice.

Global Overview

All tracked central banks, side by side.

Over the past 3 months: 3 hiked, 1 cut, and 4 held steady across the 8 banks tracked here.

The situation, AI-generated and grounded in the real numbers above and the sources below

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Central Bank Room

Bank of England

United Kingdom

Rates

3.75%

Bank Rate

As of 2026-08-03

Daily

Resolution

-25bp

Last move

2025-12-18

Rate decisions

  1. 2025-12-18

    3.75% (-25bp)

    quarter-point cut — moves like this are typically used to support a slowing economy by making borrowing and spending cheaper.

  2. 2025-08-07

    4% (-25bp)

    quarter-point cut — moves like this are typically used to support a slowing economy by making borrowing and spending cheaper.

  3. 2025-05-08

    4.25% (-25bp)

    quarter-point cut — moves like this are typically used to support a slowing economy by making borrowing and spending cheaper.

  4. 2025-02-06

    4.5% (-25bp)

    quarter-point cut — moves like this are typically used to support a slowing economy by making borrowing and spending cheaper.

The one-line note next to each move is a general description of what that type of decision typically does — not this bank's own stated reason for that specific move. "Explain more" generates a short AI summary grounded only in the real, dated news articles listed as sources beneath it (never the bank's official statement, and it may say there isn't enough coverage to explain confidently).

Monetary & budgetary policy, explained

What a policy rate does

A policy rate (like the one Bank of England sets) is the interest rate a central bank charges or pays on very short-term lending to commercial banks. Every other interest rate in the economy — mortgages, savings accounts, business loans, credit cards — is priced off that base rate, so moving it is the main lever a central bank has to influence the whole economy.

Hikes vs. cuts

Raising the rate ("hiking") makes borrowing more expensive and saving more attractive, which tends to slow spending and investment — used to cool inflation or an overheating economy. Cutting the rate does the opposite: cheaper borrowing encourages spending and investment, used to support a slowing economy or fight deflation/unemployment. Changes typically take months to fully feed through — this is often called the "transmission mechanism."

Monetary policy vs. budgetary (fiscal) policy

Monetary policy — interest rates and money supply — is set by the central bank, which is deliberately kept independent from elected government in most major economies. Budgetary (fiscal) policy — government spending and taxation — is set by the government itself. The two can reinforce each other (both loosening at once to boost growth) or work against each other (a government spending more while its central bank raises rates to fight the inflation that spending causes) — watching both together usually explains the economy better than either alone.

What tends to move when the rate moves

Currency: higher rates often attract foreign capital seeking yield, which can strengthen the currency (and vice versa). Bonds: bond prices generally move opposite to rate expectations. Equities: higher rates raise the discount rate used to value future company earnings, which tends to weigh on stock valuations, especially for growth companies. None of this is guaranteed or immediate — it's the general direction markets expect, not a formula.

Markets & the economy

United Kingdom's stock market next to the policy rate — pick a period.

UK equities (≈ FTSE 100): +20.2% over this window

Left axis: policy rate (%). Right axis: UK equities (≈ FTSE 100), tracked via iShares MSCI United Kingdom ETF (EWU). The two lines are shown side by side for comparison — no correlation is implied; judge for yourself.

The situation over the past year — AI-generated, grounded in the real index move and sources below

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Real coverage from the past year

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