BoE Eyes Steady Course as UK Inflation Hits New Heights

The Bank of England is expected to keep interest rates unchanged for the rest of 2026, despite inflation climbing above its target.

Nearly 90% of economists surveyed by Reuters expect the Bank of England to hold its benchmark Bank Rate at 3.75% through the end of the year.

Only two of the 64 economists surveyed predict a rate cut, while six expect the central bank to raise borrowing costs.

The consensus has strengthened since July, when 83% of respondents expected rates to remain unchanged.

Inflation likely accelerated to 2.9% in July from 2.6% in June, according to a separate Reuters poll ahead of official figures due Wednesday.