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Interest rates unlikely to reach 4.75% by next summer, say City economists

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 per…

✦ Extractive summary — built from the sources' own reporting•From 1 source•1 min read•Updated October 25, 2026, 12:00 PM UTC
Key points
  • 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…
  • 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…

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…

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