Related topic: Inflation

Markets have priced in a rise to 4% later this year and two further increases in 2027

Today’s figures put a rate hike "into the category of a genuine consideration", with at least one expected this year, industry experts say.

This follows a 15-month low for inflation in June. 

UK economy's June bounceback "emboldens hawks and increases chance of interest rate rise”, industry experts say.

Industry experts have cautioned that today's hold is 'not a signal that rate cuts are back on the table', instead not ruling out a base rate rise before the end of 2026.

The Bank of England is expected to maintain its 'wait and see' approach at next week's meeting.

The UK economy is showing signs of resilience despite an uncertain geopolitical environment. 

Average two-year remortgage rates have trebled in ten years, while the average five-year rate has doubled.

An extended hold to interest rates is "very much the correct and appropriately measured policy response", Taylor said.

More than two thirds of those questioned expect the economy to slow, while just 3% anticipate growth.