HSBC and Deutsche Bank delay expectations for Bank of England rate cuts

HSBC and Deutsche Bank have postponed their expectations for interest rate cuts by the Bank of England, citing increased uncertainty regarding persistent high inflation in the UK and the timeline for monetary easing.

HSBC predicts that the Bank of England will keep interest rates unchanged until April next year, revising its previous forecast of a quarterly rate cut starting from August last year. The bank's interest rate forecast for February 2027 is 3%, lower than the current 4%.

Deutsche Bank has delayed its expectation for the next interest rate cut by the Bank of England from November to December, noting that the 5 to 4 vote result from last month's monetary policy meeting reflects deep divisions within the committee, and indicated that Governor Bailey may prefer to wait until the end of the year to make a decision