Bank of England Seen Holding Rate at 3.75% as 40% of Economists Flag Hike Risk
Updated
Updated · Reuters · Jun 12
Bank of England Seen Holding Rate at 3.75% as 40% of Economists Flag Hike Risk
3 articles · Updated · Reuters · Jun 12
Summary
All 65 economists in a Reuters poll expect the Bank of England to leave Bank Rate unchanged at 3.75% on June 18, with the median forecast showing no move through end-2026.
Nearly 40% of respondents still see at least one rate hike later this year, while only six expect a 25-basis-point cut, as the Iran war lifts energy costs and broadens price pressures.
Inflation is forecast to peak at 3.6% late this year, average 3.3% in 2026 and ease to 2.6% in 2027, keeping it above the BoE's 2% target for an extended period.
Growth forecasts were nudged up despite the inflation risk: economists now see Britain expanding 1.0% in 2026, up from 0.8% in May, even after April GDP contracted 0.1%.