Bank of England to hold rates for remainder of year despite inflation risks
TLT•Longer-term outlook points to eventual easing
Even though inflation is forecast to remain above 2% until late next year, a narrow majority of economists expect at least one cut in Bank Rate by the middle of 2027.
Economic growth will average 1.1% and 1.2% in 2026 and 2027, respectively, before accelerating to 1.5% in 2028, according to the survey.
Reuters poll sees Bank of England holding rates at 3.75%
The Bank of England will leave interest rates unchanged at 3.75% for the rest of the year, according to a strong majority of economists polled by Reuters, clinging to a view they've held since the U.S.-Israeli war on Iran began in late February.
The UK economy has remained mostly resilient since then, with little evidence of any spillover from higher energy prices into the broader economy. That has given the central bank room to stay on the sidelines.
