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UBS Doesn't See Bank of England Rate Cut Next Week; Postpones Rate Reduction Forecast to April

BY MT Newswires | ECONOMIC | 03/09/26 11:39 AM EDT

11:39 AM EDT, 03/09/2026 (MT Newswires) -- UBS said Monday it changed its Bank of England policy call and no longer expects the BoE to cut the Bank Rate at the next meeting on March 19.

In light of the recent escalation in the Middle East and a spike in energy prices, the bank thinks the BoE's Monetary Policy Committee will prefer to wait for more clarity and stay on hold. The upcoming meeting is likely to be overshadowed by heightened uncertainty around the future trajectory of energy prices and their impact on the inflation and growth outlook.

Looking beyond the March meeting, for now UBS maintains its call of two more rate cuts this year, but pushes them out to April and July, instead of March and June.

That said, the bank sees "significant" risks to its baseline depending on the developments in the Middle East and implications for energy prices. In a scenario where energy prices remain elevated for a prolonged period of time, pushing inflation above the target over the coming quarters, UBS doesn't exclude further delays to interest rate cuts.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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