HSBC Forecasts Bank of England to Resume Rate Cuts in April 2026

Key Takeaways:HSBC now expects the Bank of England (BoE) to hold rates in November 2025 and February 2026.The bank projects that the BoE will resume cutting interest rates in April 2026.The forecast marks a shift from earlier expectations of near-term easing.HSBC analysts forecast that the Bank of England (BoE) will resume cutting interest rates in April 2026, according to Jinshi Data. The bank’s latest outlook signals a delay compared to earlier predictions that cuts could arrive as soon as late 2025.The updated projection suggests that the BoE will leave interest rates unchanged in November 2025 and February 2026, maintaining a cautious stance despite easing inflation pressures and slowing economic growth.The decision to push back the expected timeline for cuts reflects the BoE’s balancing act between inflation risks and recession concerns. Analysts note that by spring 2026, conditions may allow the central bank to reintroduce monetary easing without jeopardizing price stability.