Where will UK interest rates be in 2025?
The committee has since left rates unchanged, including at its March 2024 policy meeting. At 5.25%, rates are at their highest level since 2008.In the long-term, the United Kingdom Interest Rate is projected to trend around 3.75 percent in 2025 and 2.75 percent in 2026, according to our econometric models. In the United Kingdom, benchmark interest rate is set by the Monetary Policy Committee (MPC). The Bank of England official interest rate is the repo rate.Latest UK interest rate predictions

Date Interest rate predictions (Bank of England base rate)
March 2024 5.25% (actual)
August 2024 4.93% (predicted)
January 2025 4.49% (predicted)
January 2026 3.88% (predicted)

What is the interest rate decision in the UK : UK (Bank of England)

On 21 March, the Bank of England's Monetary Policy Committee (MPC) announced it had left interest rates unchanged at 5.25% for the fifth meeting in a row. This follows 14 consecutive meetings where rates were increased from 0.1% in December 2021 to 5.25% in August 2023.

What is predicted UK interest rate 2026

It expects a rate of 5.1% for 2024, one of 4.5% for 2025 and a rate of 4.2% for 2026.

Where will interest rates be in 2026 UK : 2025/2026 UK Interest Rate Predictions

Lowest Lowest Projection for Q4 2025: 30 Rates anticipates a significant drop to 1.75%. Highest Projection for 2026: Money To The Masses sees rates at 3.74%. Lowest Projection for 2026: 30 Rates predicts a steep fall to 2.0%.

Following latest UK main economic indicators, the BoE sees an interest rate of 5.3% for the end of 2023. It expects a rate of 5.1% for 2024, one of 4.5% for 2025 and a rate of 4.2% for 2026.

Inflation is anticipated to keep falling in 2024 and may reach the BoE's 2% target earlier than expected. As inflation has declined faster than expected this year, the BoE could start cutting the base rate in 2024 and possibly fall to 4% by the end of next year, according to data from private bank Berenberg.

What is the Bank of England forecast for 2025

The Bank of England will cut the base rate to around 3 per cent by in 2025, according to the latest forecasts from Capital Economics. Wider market expectations continue to also all point towards the Bank of England cutting the base rate later in 2024, albeit they have been revised up since the start of the year.With some experts speculating that interest rates could be cut from March 2024, this is good news for homeowners. Swap rates have also been declining, which is based on where the market thinks interest rates will be in the future. This is significant as swap rates are used to price fixed-rate mortgage deals.On 21 March 2024, the Bank of England held the base rate at 5.25% for the fifth time in a row. Financial markets are currently predicting the first cut in interest rates will be in June 2024, falling to around 3% by the end of 2025, according to the latest forecasts from Capital Economics.

While it's not possible to make accurate UK mortgage rate predictions for the next 5 years, the Office for Budget Responsibility has forecast that mortgage rates on average are expected to rise from a low of 2% in 2021 to a peak of 5% in 2027 across all properties.

What will UK interest rates do in the next 5 years : The Bank of England predicts that UK interest rates will be 4.4% in quarter two of 2024. Rates are likely to decrease further to 3.8% in the second quarter of 2025 and reach 3.6% in 2026. Beyond this, it is increasingly difficult to predict UK interest rates.

Will UK interest rates rise in next 5 years : What will UK interest rates be in 5 Years The Bank of England predicts that UK interest rates will be 4.4% in quarter two of 2024. Rates are likely to decrease further to 3.8% in the second quarter of 2025 and reach 3.6% in 2026. Beyond this, it is increasingly difficult to predict UK interest rates.

What will the interest rate be in 2026 UK

2025/2026 UK Interest Rate Predictions

Highest Projection for Q4 2025: The Bank of England predicts interest rates in 2025 will stabilise at 3.4%. Lowest Lowest Projection for Q4 2025: 30 Rates anticipates a significant drop to 1.75%. Highest Projection for 2026: Money To The Masses sees rates at 3.74%.

2025/2026 UK Interest Rate Predictions

Highest Projection for Q4 2025: The Bank of England predicts interest rates in 2025 will stabilise at 3.4%. Lowest Lowest Projection for Q4 2025: 30 Rates anticipates a significant drop to 1.75%. Highest Projection for 2026: Money To The Masses sees rates at 3.74%.Mortgage rates are expected to remain below 4% until 2026

House prices will fall less than previously forecast in 2024 and mortgage rates are also predicted to rise less steeply, data shows.

What are mortgage rates likely to be in 2026 UK : According to the BoE, interest rates are likely to come down to about 5.1% by the end of 2024, going further down to 4.5% in 2025 and 4.2% in 2026.