Aberdeen: More interest rate cuts BoE expected in 2026
Luke Bartholomew, economist at Aberdeen Investments, comments on today’s interest rate decision by the Bank of England:
“Given the run of softer inflation data, weaker labour market, and disappointing GDP growth recently, the cut today was widely expected. But the fact that the vote was so close suggests that many policymakers are still not convinced that the economy is fully out of the woods yet when it comes to inflation. However, with the economy set to remain weak into next year, and various measures in the recent Budget designed to push down on headline inflation, we think there are more rate cuts to come, with Bank Rate eventually heading back towards 3% late next year.”