UBS says BoE likely to hold rates through 2026, restart cuts in February 2027

  • BoE is likely to keep the Bank Rate at 3.75% for the remainder of 2026. 
  • Maintaining a restrictive stance should allow the BoE to contain any second‑round inflation effects; given a weak economic and labour‑market starting point, further hikes are unlikely. 
  • UBS expects the next policy moves to be rate cuts in February and April 2027. 
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