Bank of England Predicts Steady Interest Rates Through Mid-2027

Economists polled by Reuters predict that the Bank of England (BoE) will hold interest rates steady at 3.75% for the rest of this year and through at least mid-2027, citing concerns about inflation not being strong enough to warrant a rate hike.

A Reuters survey of 65 economists found that nearly 90% expect rates to remain on hold until the end of 2026, with only eight anticipating a rise to 4.00% by year-end.

The ongoing US-Israeli conflict and its impact on energy prices may have delayed any prospect of a rate cut until late next year, according to economists.

Financial markets are currently pricing in three rate hikes through mid-2027, starting in November, but experts believe this is overly optimistic.