Markets push back BoE rate hike expectations to February 2027

As bond yields fall, markets are revising their expectations for the Bank of England’s rate hikes. Investors now foresee a modest quarter-point increase by February 2027, with less than four basis points anticipated for the upcoming September meeting. The persistent inflation coupled with a weakening labor market is adding complexity to the monetary policy landscape, keeping a keen eye on economic indicators and central bank cues for future actions.