Abstract
2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the United Kingdom
Fund Relations
(Data as of December 31, 2017)
Membership Status: Joined December 27, 1945; accepted Article VIII.
General Resources Account:
| SDR Million | Percent Quota | |
|---|---|---|
| Quota | 20,155.1 | 100.00 |
| Fund holdings of currency | 17,023.09 | 84.46 |
| Reserve position in Fund | 3,132.18 | 15.54 |
| New arrangement to borrow | 1,048.05 |
| SDR Million | Percent Quota | |
|---|---|---|
| Quota | 20,155.1 | 100.00 |
| Fund holdings of currency | 17,023.09 | 84.46 |
| Reserve position in Fund | 3,132.18 | 15.54 |
| New arrangement to borrow | 1,048.05 |
SDR Department:
| SDR Million | Percent Allocation | |
|---|---|---|
| Net cumulative allocations | 10,134.20 | 100.00 |
| Holdings | 8,097.44 | 79.9 |
| SDR Million | Percent Allocation | |
|---|---|---|
| Net cumulative allocations | 10,134.20 | 100.00 |
| Holdings | 8,097.44 | 79.9 |
Outstanding Purchases and Loans: None
Financial Arrangements: None
Projected Payments to Fund (SDR million; based on present holdings of SDRs):
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Principal | |||||
| Charges/Interest | 15.10 | 15.37 | 15.38 | 15.37 | 15.37 |
| Total | 15.10 | 15.37 | 15.38 | 15.37 | 15.37 |
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Principal | |||||
| Charges/Interest | 15.10 | 15.37 | 15.38 | 15.37 | 15.37 |
| Total | 15.10 | 15.37 | 15.38 | 15.37 | 15.37 |
Exchange Rate Arrangement:
The UK authorities maintain a free floating regime.
The UK accepted the obligations of Article VIII, Sections 2, 3, and 4 on February 15, 1961. It maintains an exchange system free of multiple currency practices and restrictions on payments and transfer for current international transactions, except for exchange restrictions imposed solely for the preservation of national or international security. The UK notifies the Fund of the maintenance of measures imposed solely for the preservation of national and international security under Executive Board Decision No. 144–(52/51). The last of these notifications was made on January 9, 2012 (EBD/12/2).
Article IV Consultation:
The last Article IV consultation was concluded on June 15, 2016. The UK is on the standard 12-month consultation cycle.
FSAP:
The FSAP update was completed at the time of the 2011 Article IV consultation. A mandatory FSAP has also been conducted in time for the 2016 Article IV consultation, in line with the five-year cycle for members or members’ territories with financial sectors that are determined to be systemically important pursuant to Decision No. 15495-(13/111), adopted December 6, 2013.
Technical Assistance: None
Resident Representatives: None
Statistical Issues
(As of January 2018)
| I. Assessment of Data Adequacy for Surveillance |
|---|
| General: Data provision is broadly adequate for surveillance. |
| National Accounts: In 2014, the Office of National Statistics (ONS) moved from ESA 95 to the European System of Accounts 2010: ESA 2010. Data are disseminated in three main formats: the “Four Week” estimate; the “Eight Week” estimate; and the “Twelve Week Estimate.” The last two meet the SDDS requirements and publish current and constant price data in millions of pounds sterling. GDP volume measures use a fixed base year, which changes every year through annual chain linking. The current base year is 2011. For the estimate of the GDP, the UK uses income, production and expenditure data. |
| Price Statistics: The official monthly consumer price index (CPI), a composite of urban and rural price data, is available on a timely basis. The reference year of the CPI is 2015 = 100. For the PPI, the product weights are updated annually, index weights are updated every five years. The last update to index weights was in 2013, in respect of 2010. |
| Government Finance Statistics: Annual GFS data are reported for publication in the Government Finance Statistics Yearbook (GFSY). The fiscal data for the Article IV consultations missions cover public sector operations and the general government and public sector boundary is in line with ESA 2010/GFSM 2014. The GFS data are compiled on an accrued basis. The UK participates in the Eurostat GFS convergence project with the IMF and thus, GFS data for general government, including government balance sheet data, are submitted in line with GFSM 2014 presentation on a quarterly and annual basis. The UK publishes detailed information on public sector finances for the entire public sector on a monthly basis, and also compiles comprehensive annual financial statements for the public sector including a full balance sheet in the Whole of Government Accounts publication. From 2010, Northern Rock Asset Management and Bradford and Bingley, formerly classified as financial corporations, are included within central government. Government revenue in 2012 is affected by the substantial one off receipt of £28 bn from the transfer from the Royal Mail Pension Fund. |
| Monetary and Financial Statistics: The Bank of England (BoE) has not yet reported monetary statistics using the Standardized Report Forms (SRFs) for publication in International Financial Statistics (IFS). Data published in IFS are reported by the BOE using the old forms (forms 10R and 20R) with supplementary breakdowns by currency and by type of financial instruments for some accounts in the central bank data retrieved from the BoE’s website. The IMF’s Statistics Department received a draft SRF 2SR for other depository corporations from the BoE in early 2014 and provided suggestions for improvement regarding sectorization. The BoE indicated that it will address the data gaps and advance the SRFs compilation. |
| Financial Sector Surveillance: The BoE reports all 12 core FSIs, 11 of the 13 encouraged FSIs for deposit takers, and 8 of the other encouraged FSIs—three FSIs for nonfinancial corporations, one FSI for households, and four FSIs for real estate markets. Data frequency has improved from semi-annual to quarterly frequency since 2015. However, timeliness needs improvement as some FSIs, such as residential and commercial real estate prices are available only through the second quarter of 2014. The FSI data and metadata for the UK are posted on the IMF’s |
| External Sector Statistics: The ONS compiles and disseminates detailed quarterly balance of payments and International Investment Position. BPM6 was implemented in the UK’s balance of payments accounts and IIP in September 2014. The impact on the UK’s balance of payments and IIP as a result of the introduction of BPM6 for the period 1997 to 2013 was published as annex to the UK’s balance of payments, Q2 2014 edition. The UK’s balance of payments statistics is compiled at the same time as the national accounts. A Balance of Payments statistical bulletin and time series dataset is published quarterly on the ONS website, 90 days after the end of the period to which the data relate to. There are several different sources used in the production of BoP statistics, some of which are collected in the ONS’s surveys and some of which are provided by external partners such as the BoE and HM Revenue and Customs (HMRC). The country also participates in the CPIS with data reported for 2003 onwards and recently joined the CDIS. |
| II. Data Standards and Quality |
| The country subscribes to SDDS and is working towards the eventual subscription of SDDS plus. |
| I. Assessment of Data Adequacy for Surveillance |
|---|
| General: Data provision is broadly adequate for surveillance. |
| National Accounts: In 2014, the Office of National Statistics (ONS) moved from ESA 95 to the European System of Accounts 2010: ESA 2010. Data are disseminated in three main formats: the “Four Week” estimate; the “Eight Week” estimate; and the “Twelve Week Estimate.” The last two meet the SDDS requirements and publish current and constant price data in millions of pounds sterling. GDP volume measures use a fixed base year, which changes every year through annual chain linking. The current base year is 2011. For the estimate of the GDP, the UK uses income, production and expenditure data. |
| Price Statistics: The official monthly consumer price index (CPI), a composite of urban and rural price data, is available on a timely basis. The reference year of the CPI is 2015 = 100. For the PPI, the product weights are updated annually, index weights are updated every five years. The last update to index weights was in 2013, in respect of 2010. |
| Government Finance Statistics: Annual GFS data are reported for publication in the Government Finance Statistics Yearbook (GFSY). The fiscal data for the Article IV consultations missions cover public sector operations and the general government and public sector boundary is in line with ESA 2010/GFSM 2014. The GFS data are compiled on an accrued basis. The UK participates in the Eurostat GFS convergence project with the IMF and thus, GFS data for general government, including government balance sheet data, are submitted in line with GFSM 2014 presentation on a quarterly and annual basis. The UK publishes detailed information on public sector finances for the entire public sector on a monthly basis, and also compiles comprehensive annual financial statements for the public sector including a full balance sheet in the Whole of Government Accounts publication. From 2010, Northern Rock Asset Management and Bradford and Bingley, formerly classified as financial corporations, are included within central government. Government revenue in 2012 is affected by the substantial one off receipt of £28 bn from the transfer from the Royal Mail Pension Fund. |
| Monetary and Financial Statistics: The Bank of England (BoE) has not yet reported monetary statistics using the Standardized Report Forms (SRFs) for publication in International Financial Statistics (IFS). Data published in IFS are reported by the BOE using the old forms (forms 10R and 20R) with supplementary breakdowns by currency and by type of financial instruments for some accounts in the central bank data retrieved from the BoE’s website. The IMF’s Statistics Department received a draft SRF 2SR for other depository corporations from the BoE in early 2014 and provided suggestions for improvement regarding sectorization. The BoE indicated that it will address the data gaps and advance the SRFs compilation. |
| Financial Sector Surveillance: The BoE reports all 12 core FSIs, 11 of the 13 encouraged FSIs for deposit takers, and 8 of the other encouraged FSIs—three FSIs for nonfinancial corporations, one FSI for households, and four FSIs for real estate markets. Data frequency has improved from semi-annual to quarterly frequency since 2015. However, timeliness needs improvement as some FSIs, such as residential and commercial real estate prices are available only through the second quarter of 2014. The FSI data and metadata for the UK are posted on the IMF’s |
| External Sector Statistics: The ONS compiles and disseminates detailed quarterly balance of payments and International Investment Position. BPM6 was implemented in the UK’s balance of payments accounts and IIP in September 2014. The impact on the UK’s balance of payments and IIP as a result of the introduction of BPM6 for the period 1997 to 2013 was published as annex to the UK’s balance of payments, Q2 2014 edition. The UK’s balance of payments statistics is compiled at the same time as the national accounts. A Balance of Payments statistical bulletin and time series dataset is published quarterly on the ONS website, 90 days after the end of the period to which the data relate to. There are several different sources used in the production of BoP statistics, some of which are collected in the ONS’s surveys and some of which are provided by external partners such as the BoE and HM Revenue and Customs (HMRC). The country also participates in the CPIS with data reported for 2003 onwards and recently joined the CDIS. |
| II. Data Standards and Quality |
| The country subscribes to SDDS and is working towards the eventual subscription of SDDS plus. |
United Kingdom: Table of Common Indicators Required for Surveillance
(As of January 9, 2018)
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
United Kingdom: Table of Common Indicators Required for Surveillance
(As of January 9, 2018)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | Same day | Same day | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | December 2018 | 01/04/2018 | M | M | M |
| Reserve/Base Money | December 2018 | 01/04/2018 | M | M | M |
| Broad Money | November 2017 | 01/04/2018 | M | M | M |
| Central Bank Balance Sheet | January 03, 2018 | 01/04/2018 | W | W | W |
| Consolidated Balance Sheet of the Banking System | October 2017 | 12/20/2017 | M | M | M |
| Interest Rates2 | Same day | Same day | D | D | D |
| Consumer Price Index | November 2017 | 12/12/2017 | M | M | M |
| Revenue, Expenditure, Balance and | |||||
| Composition of Financing3 – General | Q2 2017 | 11/15/2017 | Q | Q | Q |
| Government4 | |||||
| Revenue, Expenditure, Balance and | |||||
| Composition of Financing3 – Central | November 2017 | 12/21/2017 | M | M | M |
| Government | |||||
| Stocks of Central Government and Central Government-Guaranteed Debt5 | November 2017 | 12/21/2017 | M | M | M |
| External Current Account Balance | Q3 2017 | 12/22/2017 | Q | Q | Q |
| International Investment Position6 | Q3 2017 | 12/22/2017 | Q | Q | Q |
| Exports and Imports of Goods and Services | October 2017 | 12/08/2017 | M | M | M |
| GDP/GNP | Q3 2017 | 12/22/2017 | Q | Q | Q |
| Gross External Debt | Q3 2017 | 12/22/2017 | Q | Q | Q |
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
United Kingdom: Table of Common Indicators Required for Surveillance
(As of January 9, 2018)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | Same day | Same day | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | December 2018 | 01/04/2018 | M | M | M |
| Reserve/Base Money | December 2018 | 01/04/2018 | M | M | M |
| Broad Money | November 2017 | 01/04/2018 | M | M | M |
| Central Bank Balance Sheet | January 03, 2018 | 01/04/2018 | W | W | W |
| Consolidated Balance Sheet of the Banking System | October 2017 | 12/20/2017 | M | M | M |
| Interest Rates2 | Same day | Same day | D | D | D |
| Consumer Price Index | November 2017 | 12/12/2017 | M | M | M |
| Revenue, Expenditure, Balance and | |||||
| Composition of Financing3 – General | Q2 2017 | 11/15/2017 | Q | Q | Q |
| Government4 | |||||
| Revenue, Expenditure, Balance and | |||||
| Composition of Financing3 – Central | November 2017 | 12/21/2017 | M | M | M |
| Government | |||||
| Stocks of Central Government and Central Government-Guaranteed Debt5 | November 2017 | 12/21/2017 | M | M | M |
| External Current Account Balance | Q3 2017 | 12/22/2017 | Q | Q | Q |
| International Investment Position6 | Q3 2017 | 12/22/2017 | Q | Q | Q |
| Exports and Imports of Goods and Services | October 2017 | 12/08/2017 | M | M | M |
| GDP/GNP | Q3 2017 | 12/22/2017 | Q | Q | Q |
| Gross External Debt | Q3 2017 | 12/22/2017 | Q | Q | Q |
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).