The ECB hiked rates a second time in this cycle last week and did not suggest that the 2.50% they previously flagged as top end of neutral will be a key line in the sand. In contrast, the BoE did not hike this week, but left the door wide open to do so – maybe even before the end of 2026. Listen to Peter and Cathal as they dissect both recent meetings and provide an outlook for the rates paths going forward against a difficult energy price outlook.

Participants:

• Peter Schaffrik (Desk Strategy), Head of UK/European Rates & Economics
• Cathal Kennedy (Desk Strategy), Senior UK Economist

* Research Analyst opinions are their published views, independent of those expressed by Desk Analysts