The Bank of England (BoE) will keep interest rates unchanged for the rest of the year, according to a Reuters poll conducted between August 13 and 18.
Nearly 90% of economists, or 56 of 64, expect the BoE to leave rates unchanged at 3.75% through the end of 2026, up from 83% last month. All respondents forecast no change at the central bank’s next meeting in September.
Economists largely agree that the BoE can stay patient as the inflationary impact of higher Oil prices remains modest despite inflation staying above the 2% target.
The poll also showed a narrow majority of economists expect at least one rate cut by mid-2027, even though inflation is forecast to stay above target until late next year.
Attention now turns to the UK inflation report for July, due on Wednesday. Headline Consumer Price Index (CPI) inflation is expected to rise to 2.9% YoY from 2.6%, while core inflation is forecast to ease to 2.5% from 2.6%.
