Home›Forex›Central Banks›BoE expected to keep rates unchanged through end of 20…

BoE expected to keep rates unchanged through end of 2026

A Reuters poll found nearly 90% of economists expect the BoE to leave Bank Rate at 3.75% through end-2026, with no change expected at the September meeting.

Reported · Written up by our desk · Central Banks

FXStreet, citing a Reuters poll of economists conducted between August 13 and 18, said the Bank of England is expected to keep interest rates unchanged for the rest of the year.

Nearly 90% of economists, or 56 of 64, forecast Bank Rate will remain at 3.75% through the end of 2026, versus 83% in the prior month, and all respondents expected no change at the central bank’s next meeting in September.

The poll also indicated that a narrow majority of economists expect at least one rate cut by mid-2027, even as inflation is forecast to stay above the BoE’s 2% target until late next year.

With the UK inflation report for July due Wednesday, the forecast calls for headline CPI inflation to rise to 2.9% year over year from 2.6%, while core inflation is expected to ease to 2.5% from 2.6%.

More like this

Sources