ING's Francesco Pesole said investors' expectations for Bank of England rate hikes appear too aggressive. Markets currently price a cumulative 36bps of tightening in 2026, but ING expects the Bank of England to keep rates at 3.75% through 2026. Pesole said: We still see material downside risk to short-term sterling rates.

2026-07-17

ING's Francesco Pesole said investors' expectations for Bank of England rate hikes appear too aggressive. Markets currently price a cumulative 36bps of tightening in 2026, but ING expects the Bank of England to keep rates at 3.75% through 2026. Pesole said: We still see material downside risk to short-term sterling rates.