Skip to main content

Electoral cycle to keep rates high, but deepen cuts in 2025

A loosening in fiscal policy next year ahead of a possible election in late 2024 is another reason to think that the Bank of England will keep rates at their current level of 5.25% until late in 2024. And a tightening in fiscal policy in 2025 will contribute to rate cuts in 2025 being faster and larger than investors currently anticipate.

Note: We’ll be discussing how the UK’s green intentions are being constrained by political realities and what’s needed to change this in a UK climate policy Drop-In on Thursday 28th September at 3pm BST. Register here to join.

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 gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access