UK composite leading indicator: short-term interest rate
UK composite leading indicator: short-term interest rate stood at 98.15 in Sep 2026, according to OECD Short-Term Economic Statistics. It is one of the indicators in the Confidence and leading indicators table (Value · Monthly), with a complete series running from Jan 1985 to Sep 2026. The complete series with an interactive chart, free to download.
This indicator in the Confidence and leading indicators table
| Indicator | 09-2026 | 08-2026 | 07-2026 | 06-2026 | 05-2026 | 04-2026 | 03-2026 | 02-2026 | 01-2026 | 12-2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Composite leading indicator | 101.38 | 101.14 | 100.86 | 100.61 | 100.43 | 100.36 | 100.39 | 100.48 | 100.58 | 100.66 | |
| Component: short-term interest rate | 98.15 | 98.21 | 98.27 | 98.32 | 98.38 | 98.44 | 98.51 | 98.58 | 98.67 | 98.77 | |
| Component: production tendency survey | 99.78 | 99.64 | 99.53 | 99.46 | 99.44 | 99.44 | 99.46 | 99.48 | 99.48 | 99.47 |
Understanding UK composite leading indicator: short-term interest rate
Near-term borrowing costs observed in financial markets across the United Kingdom represent the monetary policy and liquidity sub-index of the leading framework. This metric reflects the price of short-term wholesale credit, providing insight into financing conditions for businesses and households. Unlike equity valuations or physical output surveys, this financial indicator is tightly bound to central bank policy expectations and money market liquidity.
Assessing this interest rate component requires understanding that declining borrowing costs can signify either monetary easing to stimulate growth or rising economic distress prompting safe-haven liquidity demands. Analysts must evaluate period-on-period shifts within the context of prevailing monetary policy frameworks. Comparing this rate directly with real economic activity measures can be misleading due to transmission lags between financial markets and the wider economy.
Frequently asked questions
- What financial condition does this component track within the United Kingdom framework?
- It tracks short-term interest rates in money markets, reflecting near-term borrowing costs and liquidity conditions.
- How does this interest rate series differ from the share price component?
- While share prices measure equity market valuations, this component measures debt financing costs and monetary policy transmission.
- Why should analysts exercise caution when interpreting changes in short-term rates?
- Rate movements can reflect various underlying drivers, including central bank interventions or shifts in commercial liquidity demand.