BOE Expected to Keep Interest Rates on Hold as Current Level Looks Restrictive
Dow Jones
Jul 27
0916 GMT - The Bank of England is expected to leave interest rates unchanged at 3.75% during Thursday's policy meeting and potentially in the coming months, MFS Investment's Peter Goves says in a note. The current level of interest rates is already restrictive, while the U.K. labor market remains weak and should mitigate second-round effects of high energy prices on inflation, if any emerge, Goves says. "Caution can and should prevail but a hold next week--and beyond--is looking increasingly plausible." Markets are fully pricing in a quarter-point BOE rate increase in November, and a 46% chance of a second rate rise by year-end, LSEG data show. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
July 27, 2026 05:16 ET (09:16 GMT)
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