Markets expect UK interest rates to bottom out at 3.0% in Q1 2027, BoE survey shows

Investors polled by the Bank of England expect the central bank to steadily cut its main Bank Rate to a low of 3 per cent by its March 2027 meeting, down from 3.75 per cent after Thursday’s interest rate decision, a survey showed on Friday.

Policymakers on the Monetary Policy Committee voted 5-4 to keep borrowing costs at 3.75 per cent but signalled further cuts ahead if an expected fall in inflation looks like it will last.

Financial markets are almost fully pricing in two...