City Economists Say BoE Won’t Hit 4.75% by Summer – Full‑Point Hike Unlikely

City economists are sounding the alarm that the Bank of England is unlikely to push interest rates up by a full percentage point before next summer. The 4.75% target that has been floating around in market chatter is, according to the experts, more myth than imminent reality.

Financial markets have been betting on a hefty rate rise, but the City’s brightest minds say those predictions are off‑base. A full‑point climb would be a dramatic move that the BoE is not expected to make in the near term.

Instead, the economists suggest a gentler path – perhaps a modest bump or even a dip – with the possibility of rates being trimmed by the end of 2027. That outlook stands in stark contrast to the more aggressive forecasts that have been circulating.

“Predicting a 1‑point climb is as likely as a dragon paying rent in London,” quipped an unnamed City analyst, underscoring the scepticism surrounding the full‑point scenario. While the comment is tongue‑in‑cheek, the underlying message is serious: investors should temper expectations of a steep rate hike.

In short, the BoE may keep the rate ladder at its current height for now, and if any movement occurs it will likely be a polite tap rather than a full‑step. The City will continue to monitor the data and adjust its outlook as the economic picture evolves.