ING Predicts Bank of England Will Hold Rates Through 2026 as Inflation Peaks Near 3%

ING anticipates that the Bank of England will keep interest rates unchanged at its upcoming meeting on 30 July and maintain a prolonged pause throughout 2026, according to FX Street. James Smith from ING expects the central bank to hold steady amid easing inflation pressures.

New forecasts are expected to show UK inflation peaking close to 3%, which is notably below the 4% threshold previously considered risky. This suggests the Bank of England may take a cautious approach, prioritizing stability over further tightening.

For Japanese investors, this outlook could influence GBP-related FX and equity markets, as prolonged rate stability in the UK may affect cross-border capital flows and currency valuations.