HSBC economist Elizabeth Martins said in the report that the UK inflation rate is expected to fall within the next few months, which increases the possibility that the Bank of England will cut interest rates further. Martins said that lower household energy bills and slower wage growth are expected to reduce the UK's annual inflation rate to 2.1% in April and remain around 2% thereafter. “We expect the Bank of England to cut interest rates further in April, July, and November to reduce interest rates to 3.00% by the fourth quarter of 2026, but this forecast still faces upward risks,” she said. According to data from the London Stock Exchange Group, the British money market has now fully absorbed the expectation of a 25 basis point interest rate cut once in 2026, and a second rate cut may occur in the second half of the year.

HSBC economist Elizabeth Martins said in the report that the UK inflation rate is expected to fall within the next few months, which increases the possibility that the Bank of England will cut interest rates further. Martins said that lower household energy bills and slower wage growth are expected to reduce the UK's annual inflation rate to 2.1% in April and remain around 2% thereafter. “We expect the Bank of England to cut interest rates further in April, July, and November to reduce interest rates to 3.00% by the fourth quarter of 2026, but this forecast still faces upward risks,” she said. According to data from the London Stock Exchange Group, the British money market has now fully absorbed the expectation of a 25 basis point interest rate cut once in 2026, and a second rate cut may occur in the second half of the year.