Interest Rate Forecast Uk 2025

Interest Rate Forecast Uk 2025. The interest rate differential (30 basis points on italian btps) is thus driving the british currency to its 2023 highs. The bank saw interest rates at 4.2% in 2025 before falling down to 3.5% in 2027.

Maintaining our forecast for a uk bank rate of 3.75% by end of 2025. This will mean markets will expect a higher rate of interest to lend to the government.