The Bank of England could keep interest rates unchanged at 3.75% for the remainder of 2026, UBS global research strategists say in a note. The BOE can tackle any second-order effects of inflation by keeping rates on hold at the current restrictive level, they say. In addition, the weak starting point for the economy, including the labor market, lower the possibility of the BOE increasing interest rates, the strategists say. "We continue to expect the next [BOE] policy move to be a cut (in February and April 2027)," they say. (miriam.mukuru@wsj.com)
Dow Jones Newswires
BOE Could Keep Interest Rates on Hold in 2026, Resume Cuts in Feb 2027 — Market Talk
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The Bank of England could keep interest rates unchanged at 3.75% for the remainder of 2026, UBS global research strategists say in a note. The BOE can tackle any second-order effects of inflation by keeping rates on hold at the current restrictive level, they say. In addition, the weak starting poi…