Bank of England likely to hold interest rates through 2026
Economists expect the Bank of England to keep the Bank Rate at 3.75% through 2026. Rising inflation and stagflation risks support a cautious policy path.
The Bank of England is projected to maintain its current interest rate levels through the end of 2026, according to a recent Reuters poll of economists. Despite mounting concerns over inflation, the majority of experts believe the central bank will resist the urge to tighten policy further in the immediate future.
Financial markets had previously begun pricing in several rate increases following a surge in energy costs linked to the conflict involving the United States, Israel, and Iran. However, the poll suggests that economists remain unconvinced that a policy response is necessary at this stage.
