Bank of England Likely to Hold Rates Through 2026, Resume Cuts in 2027: Fitch

According to Fitch Ratings economist Jessica Hinds on June 17, the Bank of England is likely to keep interest rates unchanged throughout 2026, with rate cuts expected to resume in 2027. With May's headline inflation holding at 2.8% and oil prices declining this week, central bank policymakers will feel comfortable maintaining the current rate level. Hinds noted limited evidence of energy price surges raising costs elsewhere in the economy. Combined with a weak labor market, these factors support the case for sustained rates in 2026, followed by easing in 2027.
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