Dutch major bank ING expects the Bank of England to raise its key interest rate once more by February at the latest, following today’s hike to 4 percent. If energy prices rise again, the hike could come as early as December. This is according to an analysis from ING.
ING assesses that the British central bank will then be finished with its rate hikes, while the market is pricing in around four hikes over the coming year. The bank believes that the risk of a broader rise in inflation is limited and expects rate cuts to begin at the end of 2027 or the beginning of 2028. In the longer term, the key interest rate is expected to fall to around 3.25 percent.
