Dutch International: The British Central Bank is firmly committed this year to making the market sweat

On 28 July, Dutch international economists argued that the Bank’s latest forecast would show that inflation would be “nearly 3 per cent between the second half of this year and the beginning of next year”, a level that remained within central bank tolerance. In this context, its benchmark is expected to be “the British Central Bank will remain at war throughout 2026” and policy easing will be postponed to the next cycle. BNI stated that it “is currently predicting a two-off interest rate from the spring of 2027”, but stressed that this path “depends on the absence of substantial fiscal stimulus in the fall budget case”. In addition, the British pound has recently been under pressure because investors have been cautious about the sources of financing of the new Prime Minister's spending commitments at Burnham. Bernam announced a cap on transport fares and electricity, raising concerns in the market about further pressure on public finances - I don't know. This is a very sensitive issue for the United Kingdom, following the financial turmoil in Talas in 2022。