ING analyst Francesco Pesole said the Bank of England is likely to hold rates on Thursday; market attention is on whether the MPC's hawkish faction has expanded. He added that if inflation expectations remain contained, ING expects the BoE to keep policy unchanged for the rest of the year. Markets, by contrast, have priced about 37bp of tightening by year-end — the clearest near-term downside risk for sterling versus the euro.

2026-07-27

ING analyst Francesco Pesole said the Bank of England is likely to hold rates on Thursday; market attention is on whether the MPC's hawkish faction has expanded. He added that if inflation expectations remain contained, ING expects the BoE to keep policy unchanged for the rest of the year. Markets, by contrast, have priced about 37bp of tightening by year-end — the clearest near-term downside risk for sterling versus the euro.