Interest rates unlikely to reach 4.75% by next summer, say City economists

City economists believe that UK interest rates are unlikely to reach 4.75% by next summer, as predicted by financial markets. This is because the Bank of England may not increase rates by a full percentage point, contrary to market expectations. The experts think that the Bank of England could lower interest rates by the end of 2027, which would be a significant shift in monetary policy. This change in expectations could have a notable impact on the economy and financial markets.

Why it matters

The Bank of England may not increase rates as much as expected, and could even lower them by the end of 2027. This is because City economists believe the economy will not support higher rates, and the Bank will prioritize growth over inflation control.

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