J.P. Morgan sees Bank of England rates on hold through 2026
J.P. Morgan expects the Bank of England to keep rates unchanged this year due to rising gas prices. The brokerage now forecasts the next rate cut in early 2027.
JPMorgan Chase & Co. has significantly revised its monetary policy forecast for the United Kingdom, now expecting the Bank of England to maintain its current interest rate levels through the end of 2026. This update marks a sharp pivot from the brokerage's previous outlook, which had anticipated two quarter-point rate cuts in April and June of this year. The adjustment follows a substantial upward revision in inflation projections, with analysts at JPMorgan Chase & Co. noting on Tuesday that the central bank is likely to enter an extended pause. Higher gas prices are expected to delay the return of inflation to the target level, leading the brokerage to forecast that the next rate reduction will not occur until the first quarter of 2027.
