Investors predict Bank of England interest rates will drop to three percent by March 2027
Investors expect interest rates to hit 3.0% by March 2027 according to a BoE survey. This follows a decision to hold borrowing costs at 3.75% on Thursday.
Insights:
Investors expect the Bank of England to lower the Bank Rate to a median of 3.0% by the March 2027 meeting, according to the Bank of England Market Participants Survey released today, February 6, 2026. This projection provides a significant update to market pricing for the future policy path in the United Kingdom 
GB. The survey was published immediately following a decision by the Monetary Policy Committee to maintain the Bank Rate at 3.75% in a narrow 5-4 vote.
GB. The survey was published immediately following a decision by the Monetary Policy Committee to maintain the Bank Rate at 3.75% in a narrow 5-4 vote.The Bank of England Market Participants Survey serves as the central bank's quarterly compilation of median market expectations, which materially updates the near- to medium-term monetary policy and debt-market outlook. In addition to the anticipated rate cuts, the survey revealed that median expectations for quantitative tightening remain unchanged. Market participants expect the Bank of England to continue its balance sheet reduction at a median pace of £50 billion over the 12-month period starting in October.
