City Economists Say UK Interest Rates Unlikely to Reach 4.75% by Next Summer

City economists expect UK interest rates to remain below 4.75% through next summer, according to a Guardian report. The assessment suggests forecasters do not anticipate the Bank of England raising its benchmark rate to the 4.75% threshold by next summer.

The framing of the forecast — that rates are "unlikely to reach 4.75% by next summer" — places the debate around whether the central bank's terminal rate will fall short of that marker. The report does not specify the precise level economists now expect or the timing of any moves.

The report does not detail the specific forecasts of individual economists or the reasoning behind the view, leaving the precise expected peak and the assumed path of inflation and growth unstated. Investors will therefore watch forthcoming Bank of England communications and inflation data for confirmation of whether the below-4.75% scenario gains broader traction among forecasters.