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BoE Survey: Firms See No Rate Hikes This Year
1 May
Summary
- Financial firms surveyed by BoE expect no rate hikes in 2026.
- Survey shows a shift from expecting rate cuts to stable rates.
- Interest rate futures suggest at least two rate increases this year.
Financial institutions polled by the Bank of England last month did not foresee any interest rate hikes for the current year. The central bank's quarterly Market Participants Survey, conducted in mid-April 2026, revealed a median expectation for the Bank Rate to remain unchanged by the end of 2026. This marks a significant shift from three months prior, when a rate cut was anticipated.
Conversely, current interest rate futures are priced to reflect at least two quarter-point increases in the Bank Rate this year. Expectations for quantitative tightening remained steady, with firms anticipating 50 billion pounds of tightening over the twelve-month period from October 2026 to September 2027.
