A post by @FirstSquawk on X.
BOE: MARKET RATES IMPLY BANK RATE AT 3.9% IN Q4 2026, 4.9% IN Q4 2027, 4.9% IN Q4 2028, 4.7% IN Q4 2029
@FirstSquawk on X
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The Bank of England said market-implied rates point to its key Bank Rate averaging 3.9% in Q4 2026, then rising to 4.9% in both Q4 2027 and Q4 2028 before easing to 4.7% in Q4 2029. The projected path implies roughly 100 basis points of tightening between late 2026 and late 2027, followed by a plateau and only a modest decline through 2029. The figures matter because they anchor expectations for UK borrowing costs well beyond the near term, shaping pricing for gilts, mortgages and sterling. Investors will watch whether incoming inflation and labor-market data validate the market's implied hiking cycle or force a repricing of the back-end of the curve.
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Bank of England