Interest rates unlikely to reach 4.75% by next summer, say City economists
Reported by The Guardian Business, not nibnow. We are not the publisher of this story, only the source is.
If rates stay below 4.75% borrowers and businesses will face lower financing costs than markets anticipate, affecting mortgages, loans and economic activity.
Experts say Bank of England unlikely to increase rates by full percentage point – and could lower them by end of 2027 Financial markets are wrong to predict the Bank of England will raise UK interest rates by a full percentage point or more by next summer, City economists believe. According to market-implied interest rate expectations, the Bank is likely to raise interest rates at least four times over the next year, lifting the bank rate from 3.75% today to 4.75% by the end of July, and possibl
The Bank of England sets the UK’s benchmark interest rate, which influences borrowing costs across the economy, and financial markets often price in expected rate moves based on economic data and policy guidance.
- •Changes in market-implied rate expectations as new economic data are released
- •Potential shifts in mortgage and loan pricing in response to any rate adjustments