Expert tips dramatic interest rates cut to 2.75% driven by unemployment
Why an expert is predicting a dramatic fall in interest rates during 2026
- Finance expert Bill Papadakis predicts the Bank of England could cut interest rates to 2.75 per cent by the end of summer.
- This forecast suggests four rate cuts, matching last year's total reductions but within a seven-month period.
- Papadakis believes rising unemployment and falling services inflation will prompt the Monetary Policy Committee to act faster to support the economy.
- However, this prediction is an outlier, as other analysts and money markets anticipate fewer rate cuts for the year.
- The Bank of England must balance inflation, which remains above its 2 per cent target, with economic support and future-looking data.