The Bank of England will not cut interest rates until 2026, according to projections from the Confederation of British Industry.
In its latest outlook on the UK economy, the CBI said the base rate would stay at 5.2% for at least two more years.
The forecast is based on projections showing that consumer price inflation will not reach the bank’s 2% target until the third quarter of 2025.
Financial markets, however, are betting that the Bank of England will be forced into at least three reductions to about 4.5% by the end of next year.
