BoE expected to hold rates despite inflation concerns in World Economy News 28/04/2026 The Bank of England is expected to keep interest rates unchanged at 3.75% at its April meeting on Wednesday, according to Citi analysts, despite consumer price inflation likely remaining above target for the rest of the year. Citi forecasts an 8-1 vote split, with Chief Economist Huw Pill likely to dissent in favor of a rate increase. Stay ahead of the FTSE — premium UK stock insights and real-time market movers with InvestingPro The bank’s analysis suggests the current economic environment differs fundamentally from the 2022 energy shock. The labor market has dropped below its equilibrium ratio, while the BoE’s February estimates show widening economic slack is putting downward pressure on prices. Fiscal policy constraints further limit the economy’s capacity to absorb price shocks. Rising borrowing costs have eroded fiscal headroom, raising the possibility of additional tightening at the Autumn budget and reducing the government’s ability to provide support as household bills increase. Evidence of second-round effects remains limited so far. Wage expectation surveys have fallen in the last two Decision Maker Panel surveys, and inflation expectations remain well-behaved, with long-term expectations showing smaller movements than short-term ones. Citi’s modeling suggests that rate increases could return inflation to target only one quarter faster than holding rates steady, while creating a larger and more sustained negative output gap that could push the economy into technical recession. Governor Andrew Bailey has previously pushed back on market expectations for rate hikes, telling Reuters on April 1 that markets were getting ahead of themselves. At that time, markets priced in 51 basis points of hikes through December. Current pricing stands at around 60 basis points, with an 80% probability of a June rate increase. Source: Investing.com 2026-04-28 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share