Standard Chartered: Market May Be Overpricing Bank of England Rate-Hike Expectations

Francesco Pesole of ING said in a report that investors appear to be pricing in overly aggressive Bank of England rate-hike expectations. According to Jin10, the market has already priced in expectations for the Bank of England to raise rates by a total of 36 basis points in 2026. ING expects the Bank of England to keep interest rates unchanged at 3.75% throughout 2026. Pesole said short-term sterling rates still face significant downside risk.