BoE survey shows firms expect steady rates through 2026

A Bank of England poll shows financial firms expect interest rates to remain at 3.75% through 2026. This marks a shift from previous expectations of a cut.

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The Bank of England (BoE) survey shows financial firms expect interest rates to reach 3.75% by late 2026, up from a previous 3.25% forecast. This shift reflects a removal of rate-cut expectations for the United Kingdom throughout the current year. Investors face a disconnect as market futures currently price in two quarter-point rate increases during the same period.

Shifting Rate Paths and Market Divergence

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