UK interest rates could fall to 3.5 per cent by summer despite oil surge

The Bank of England will cut interest rates to 3.50 per cent either in April or June, according to economists polled by Reuters who have largely abandoned calls for a March 19 reduction as soaring energy prices driven by the Iran war ​raise inflation risks.

Conviction on the outlook has faded, with several economists unwilling to specify at which of the two meetings next ‌quarter the BoE will cut. Some simply delayed previous expectations of a series of cuts and others have wiped out expectations for any further easing.