BoE Holds Rates Through Mid-2027 Amid Moderate Inflation

The Bank of England is likely to hold its interest rates at 3.75% until mid-2027, according to economists polled by Reuters.

The survey found that all 65 economists expect the Monetary Policy Committee (MPC) to leave interest rates unchanged at its September 17 meeting, with nearly 90% of those surveyed anticipating no change through year-end.

The median forecast now points to a 0.25-point rate cut in Q3 2027, later than previously projected, as inflation remains moderate at 2.9%.

Economists say there is still no clear evidence that energy prices linked to the ongoing conflict involving Iran are feeding through into wider inflation, despite Brent crude nearing $100 per barrel and global bond yields tightening financial conditions.