Current Bank of England financial repression rate

Financial repression
Since 2009

The financial repression rate

The Bank of England financial repression rate measures the level of Financial Repression the people of the United Kingdom are being subjected to by the Bank of England. It is calculated as the Bank of England's inflation rate less the Bank of England's base rate.

A positive rate means that, not only is the currency losing real value, it is highly likely impossible to earn an interest rate on deposits or savings in the banking system to offset the lost value. Since the measure is based on the Bank of England's inflation rate, the real rate of financial repression is likely to be much higher when based on the real inflation rate.

What financial repression is used for

Financial repression is used to confiscate real wealth from earners and savers to subsidise borrowers, especially the UK government who is the largest borrower. It can be thought of as a wealth tax on the poorest, but it is much more sinister than that. The consequences of financial repression are far-reaching.

Find out more about financial repression by the Bank of England