Dovish BoE supports our view that rates will be cut to 3.00%

5th February 2026

While leaving interest rates at 3.75% today, as widely expected, the Bank of England sounded more dovish than we anticipated. This this supports our long-held view that interest rates will be reduced to 3.00% this year rather than recent market pricing of a low of 3.50%.

We’re hosting a 20-minute online briefing at 3pm GMT today on the outlook for policy at the Bank of England, Fed and ECB. (Register here.)

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.

Business Email

Country

Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.