BoFA Global Research predicts that the Bank of England will reduce interest rates in February 2026, with the final rate reaching 3.5% 📉.
BofA Global Research Expects BoE To Cut Rates Twice This Year In August And November Vs Prior Forecast Of Cuts In August, September And November - Expects BoE To Deliver A Rate Cut In February 2026, Taking Terminal Rate To 3.5%
BoFA Global Research predicts that the Bank of England will reduce interest rates in February 2026, with the final rate reaching 3.5%
Goldman Sachs has revised its outlook for U.K. monetary policy, predicting the Bank of England will begin a series of rate cuts in November 2025. The bank expects the easing cycle to continue through the first quarter of 2026, with the policy rate reaching 3% by March. Bank of America Global Research issued a separate forecast projecting that the Bank of England will trim rates twice in 2025—now penciled in for August and November, rather than the previously expected August, September and November moves—and follow with another reduction in February 2026. BofA sees the terminal rate settling at 3.5%.