Economy and macroUpdated Yesterday

Pill says a rate rise is likely next month, with another in early 2027.

When the Bank of England raised rates from 3.75% to 4% earlier this month, Huw Pill called it a significant step—but said there was further to go. His forecast now has a sharper timetable: the Bank will probably need to raise rates next month, then again in early 2027 to tackle rising inflation. That is a likelihood he is describing, not an announced Bank decision. The Guardian report links the outlook to sharply higher mortgage payments for an estimated 2.3 million homeowners refinancing next year. For them, refinancing could come with a much steeper payment.

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