Bank of England Stands Pat on Interest Rate Amid Inflation Risks

The Bank of England is expected to keep its interest rate at 3.75% through mid-2027, according to a Reuters poll of economists.

All 65 economists surveyed between September 4 and 8 said they expected the Monetary Policy Committee to leave rates unchanged at its September 17 meeting.

Nearly 90% of the respondents, or 57 out of 65 economists, predicted that rates would remain on hold for the rest of the year.

The expectation of no rate increase this year has been a consensus among Bank of England watchers since the US-Israeli war on Iran began in late February.

Economists cited higher energy prices linked to the conflict as a reason why interest rates may not be cut until late next year, despite inflation being at 2.9% and targeting 2%.