UK: Bank of England rate cuts delayed

According to HSBC and Deutsche Bank, the regulator may maintain the key rate at its current level until April 2026. This is later than previously forecasted and is due to inflation remaining above the target, while monetary policy is under pressure from uncertainty.

⚠️ Despite signs of economic slowdown, inflationary risks still outweigh the arguments for easing. For businesses, this means continued high borrowing costs, and for households — pressure on mortgages and loans.

Experts note that the Bank of England will need to balance between fighting inflation and the threat of stagnation. The postponement of a possible rate cut signals to investors: the period of expensive money in the UK may last longer than expected.