27/03/2026
Bank of England to defy markets and hold rates this year, economists say: Reuters poll
Unexpected unanimity on the BoE's Monetary Policy Committee at this month's meeting to leave rates on hold and the resolve among policymakers to raise rates if needed has triggered the most dramatic reversals in forecasts for UK interest rates in years.
But economists disagree with financial market traders that the MPC will raise interest rates this year. British government bond yields have surged, earlier taking the benchmark 10-year gilt above 5% - its highest since 2008.
EXPECTATIONS FOR QUICK END TO WAR
For now, forecasts appear to be based on hopes the war will not drag on as well as the view that there is enough slack in the economy to afford policymakers time to wait and see if the surge in energy prices turns into wider inflation pressure.
