UK Markets Price in Four Rate Hikes by July 2027

The UK's money markets are pricing in four 0.25-percentage-point increases in the Bank of England's base rate by July 2027, according to recent data.

Under this scenario, the rate could rise from its current 3.75% to 4.75% in less than a year.

The expectations strengthened after an unexpected 0.4% increase in UK GDP in July, with economists initially forecasting no economic growth.

Wealth Club chief investment strategist Susannah Streeter said that stronger-than-expected GDP data had made a rate increase before Christmas somewhat more likely.