Bank of England Holds Steady on Interest Rates through 2026

J.P. Morgan has adjusted its forecast, now anticipating that the Bank of England will maintain interest rates at their current level throughout 2026. This shift comes after a sharp rise in UK inflation projections, suggesting a pause in rate changes until potentially the first quarter of 2027.

J.P. Morgan has revised its forecast, predicting that the Bank of England will maintain current interest rates throughout 2026.

The brokerage attributed this change to a significant increase in UK inflation projections, which led it to abandon earlier expectations of rate cuts in April and June.

Analysts now foresee the Bank of England entering an 'extended pause' period, with rate reductions considered unlikely until the first quarter of 2027 due to delayed inflation targeting.