BOE Could Keep Rates on Hold Before Cutting Them Next Year, Says Danske Bank

Dow Jones
09/17

1400 GMT - The Bank of England will probably keep interest rates unchanged until June 2027 when it could resume cutting rates, Danske Bank's Bjorn Tangaa Sillemann says in a note. "The Bank Rate of 3.75% is already restrictive, and we are more skeptical about the growth outlook for the remainder of 2026," he says. Fears of higher energy prices spreading to core inflation hasn't materialized and there are no signs of spillover effects on food prices. The labor market remains on a cooling trend with job losses accelerating in August. However, if energy prices remain elevated and the economy stays resilient, a rate rise is possible, he says. The BOE voted 6-3 to leave rates at 3.75%, as expected, Thursday.

 

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