Kaiping Macro: Bank of England May Postpone Rather Than Cancel Interest Rate Cuts

MaticHoleFiller · 2026-03-17T12:13:41+00:00

Macroeconomy analyst Paul Dales at Capital Economics stated that due to rising energy prices caused by the Middle East conflict and concerns about high inflation, the Bank of England is more likely to delay rate cuts. Market expectations for rate cuts have declined significantly, currently standing at only 5%. The central bank is expected to maintain rates unchanged at 3.75% during meetings from March through June.

MaticHoleFiller

2026-03-17 12:13:41

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Keefe, Bruyette & Woods’ Paul Dales stated in a report that the Bank of England is more likely to delay rate cuts rather than completely cancel them. The Middle East conflict has led to a surge in energy prices and raised concerns about high inflation, causing investors to reduce expectations of rate cuts. Data from the London Stock Exchange Group (LSEG) shows that the probability of the Bank of England cutting rates at the March 19 policy meeting is currently 5%, down from 83% before the outbreak of the Middle East war. Keefe, Bruyette & Woods expects the Bank of England to keep interest rates at 3.75% in its March, April, and June rate decisions.

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