The Bank of England struck a slightly hawkish tone while cutting interest rates from 4.00% to 3.75% today. But with inflation set to fall further than the Bank expects, we still think a rate cut in February is possible and that rates will fall to 3.00% in 2026 rather than to the low of 3.50% currently priced into the market.
We’re hosting a 20-minute online briefing at 3pm GMT today on the latest central bank decisions and 2026 policy outlook. (Register here.)
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services