BoE Set to Hold Rates as Inflation Remains Below Target

The Bank of England is expected to hold interest rates steady at 3.75% for the remainder of 2026 and through at least mid-2027, according to a Reuters poll of economists.

Despite the ongoing US-Israeli war on Iran driving up energy prices to near $100 a barrel, inflation remains below target, with nearly 90% of polled economists expecting no interest rate rise this year.

The Bank's Monetary Policy Committee is likely to leave rates unchanged at its September 17 meeting, with some predicting that the next move will be a quarter-point cut in the third quarter of 2027.