Business · 16 April 2026
UK inflation now expected to stay above 3% through summer. Rate cuts are off the table
The Bank of England said CPI inflation is now expected to be around 3% in Q2 rather than the 2.1% forecast in February, with potential to reach 3.5% in Q3 because of Iran war energy costs. Markets have fully unwound expectations of rate cuts this year. Around 90% of economists surveyed by Reuters now expect the Bank to hold at 3.75% on 30 April.
Reported by Bank of England / Commons Library / Reuters · How we write briefs