Overview
This survey forms part of the Bank’s quantitative market intelligence gathering. It is formulated by Bank of England staff, and enhances policymakers’ understanding of market expectations. The questions involve topics that are widely discussed in the public domain, and never presume any particular policy action. Monetary Policy Committee (MPC) members are not involved in the survey’s design.
Survey respondents originate from a broad set of market participant firms, selected by the Bank based on a number of criteria, including: (i) relevant market activity in UK rates or money markets; (ii) expertise in UK rates markets and/or UK monetary policy; (iii) willingness to participate regularly in the survey and in the Bank’s market intelligence activity; and (iv) membership of one of the Bank’s external market committees.Please contact MarketParticipantsSurvey@bankofengland.co.uk for queries or for further information.
Survey results
The survey was open from 21–23 October 2026 with responses being received from 80 market participants. For most questions, median responses across participants, along with the 25th and 75th percentiles, are reported.footnote [1] For questions that ask respondents to weight different factors or assign probabilities to specific outcomes, the mean weightings or probabilities are reported. For questions that ask respondents to select one option from a given set of possibilities, the respondent count against each option is reported.
Question 1: Expectations for Bank Rate
1a) Please provide your most likely (ie modal) expectation for Bank Rate after the following MPC meetings? (a)
25th percentile | 50th percentile | 75th percentile | Number of responses | |
|---|---|---|---|---|
5 November 2026 MPC | 4.00 | 4.00 | 4.00 | 80 |
17 December 2026 MPC | 4.00 | 4.00 | 4.00 | 80 |
4 February 2027 MPC | 4.25 | 4.25 | 4.25 | 80 |
18 March 2027 MPC | 4.25 | 4.25 | 4.25 | 80 |
29 April 2027 MPC | 4.25 | 4.25 | 4.50 | 80 |
17 June 2027 MPC | 4.25 | 4.25 | 4.50 | 80 |
29 July 2027 MPC | 4.25 | 4.25 | 4.50 | 80 |
16 September 2027 MPC | 4.00 | 4.25 | 4.50 | 80 |
One year ahead (November 2027 MPC) | 4.00 | 4.25 | 4.50 | 80 |
End-2027 Q4 | 3.75 | 4.00 | 4.25 | 79 |
End-2028 Q1 | 3.50 | 3.75 | 4.25 | 77 |
End-2028 Q2 | 3.50 | 3.75 | 4.00 | 77 |
Two years ahead (November 2028) | 3.25 | 3.50 | 3.75 | 78 |
Three years ahead (November 2029) | 3.25 | 3.50 | 3.50 | 78 |
Five years ahead (November 2031) | 3.25 | 3.25 | 3.50 | 77 |
1bi) And where do you see the level of Bank Rate at which monetary policy is neither expansionary nor contractionary (often referred to as the neutral, natural or equilibrium rate)? (a)
25th percentile | 50th percentile | 75th percentile | Number of responses |
|---|---|---|---|
3.25 | 3.50 | 3.50 | 77 |
1bii) How do you see the balance of risks around your neutral rate perception?
Count | |
|---|---|
Skewed more to the upside | 42 |
Broadly balanced | 32 |
Skewed more to the downside | 4 |
1ci) Please indicate the percentage probability that you attach to Bank Rate being at the following levels after the 5 November 2026 meeting. (a)
Mean probability (%) | |
|---|---|
<3.75% | 0.1 |
3.75% | 13.1 |
4.00% | 86.0 |
>4.00% | 0.8 |
Footnotes
- (a) In the question provided to respondents, the different Bank Rate outcomes spanned <2.50% and >5.00% at the extremes, and all 25 basis point increments in between. Results have been aggregated where the mean probabilities above or below a certain outcome were close to or at zero. Mean probabilities are rounded to one decimal place. 78 respondents answered this question.
1cii) Please indicate the percentage probability that you attach to Bank Rate being at the following levels after the 17 December 2026 meeting. (a)
Mean probability (%) | |
|---|---|
<3.75% | 0.3 |
3.75% | 7.5 |
4.00% | 71.9 |
4.25% | 19.5 |
>4.25% | 0.7 |
Footnotes
- (a) In the question provided to respondents, the different Bank Rate outcomes spanned <2.50% and >5.00% at the extremes, and all 25 basis point increments in between. Results have been aggregated where the mean probabilities above or below a certain outcome were close to or at zero. Mean probabilities are rounded to one decimal place. 78 respondents answered this question.
1ciii) Please indicate the percentage probability that you attach to Bank Rate being at the following levels one year ahead (November 2027). (a)
Mean probability (%) | |
|---|---|
<3.25% | 1.7 |
3.25% | 1.8 |
3.50% | 6.1 |
3.75% | 13.6 |
4.00% | 23.0 |
4.25% | 24.3 |
4.50% | 16.3 |
4.75% | 8.7 |
5.00% | 3.3 |
>5.00% | 1.1 |
Footnotes
- (a) In the question provided to respondents, the different Bank Rate outcomes spanned <2.50% and >5.00% at the extremes, and all 25 basis point increments in between. Results have been aggregated where the mean probabilities above or below a certain outcome were close to or at zero. Mean probabilities are rounded to one decimal place. 78 respondents answered this question.
1d) Please weight the following factors in terms of their importance in informing your expectations for the near-term path of Bank Rate. (a)
Mean weighting (%) | |
|---|---|
Energy and related commodity price developments | 30.3 |
Realised inflation outcomes (excluding energy) | 18.5 |
Domestic activity and labour market conditions | 17.2 |
Forward-looking indicators of inflation and price expectations | 16.4 |
The MPC’s communications | 15.3 |
Other | 2.3 |
Question 2: Macroeconomic outlook
2a) Please provide your most likely (ie modal) expectation for the annual rate of CPI inflation – conditioned on your Bank Rate expectations (question 1a) – at each of the following time horizons. (a)
25th percentile | 50th percentile | 75th percentile | Number of responses | |
|---|---|---|---|---|
End-2026 Q4 | 3.7 | 3.8 | 3.9 | 73 |
End-2027 Q1 | 3.9 | 4.0 | 4.3 | 73 |
End-2027 Q2 | 3.5 | 3.9 | 4.2 | 73 |
End-2027 Q3 | 2.9 | 3.4 | 3.7 | 73 |
One year ahead | 2.5 | 3.0 | 3.3 | 73 |
Two years ahead | 2.0 | 2.3 | 2.7 | 71 |
Three years ahead | 2.0 | 2.1 | 2.5 | 71 |
Five years ahead | 2.0 | 2.0 | 2.4 | 70 |
2bi) Please assign percentage probabilities to the following rates of annual CPI inflation three years ahead. (a)
Mean probability (%) | |
|---|---|
<=1.00% | 1.9 |
1.01%–1.40% | 2.7 |
1.41%–1.80% | 9.0 |
1.81%–2.20% | 31.5 |
2.21%–2.60% | 27.8 |
2.61%–3.00% | 17.3 |
>3.00% | 9.9 |
2bii) Please assign percentage probabilities to the following rates of annual CPI inflation on average from 5 years ahead to 10 years ahead (ie analogous to the five-year, five-year forward rate). (a)
Mean probability (%) | |
|---|---|
<= 1.00% | 1.6 |
1.01%–1.40% | 3.0 |
1.41%–1.80% | 9.8 |
1.81%–2.20% | 38.2 |
2.21%–2.60% | 24.4 |
2.61%–3.00% | 14.3 |
> 3.00% | 8.7 |
2c) Please provide your most likely (ie modal) expectation for the annual rate of UK GDP growth – conditioned on your Bank Rate expectations (question 1a) – at each of the following time horizons. (a)
25th percentile | 50th percentile | 75th percentile | Number of responses | |
|---|---|---|---|---|
2026 GDP growth | 1.2 | 1.4 | 1.5 | 73 |
2027 GDP growth | 1.1 | 1.3 | 1.5 | 73 |
2028 GDP growth | 1.3 | 1.5 | 1.5 | 69 |
Long run (potential) | 1.3 | 1.5 | 1.5 | 71 |
2di) When forming your expectations for Bank Rate and CPI inflation (question 1a and 2a), which of the options below are most consistent with your assumptions for Brent crude oil and UK natural gas spot prices six months ahead?
Brent crude oil price ($/barrel) | Count |
|---|---|
<55 | 0 |
55–69 | 1 |
70–84 | 9 |
85–99 | 46 |
100–114 | 20 |
115–129 | 2 |
≥130 | 0 |
UK natural gas price (GBp/therm) | Count |
|---|---|
<60 | 0 |
60–89 | 3 |
90–119 | 3 |
120–149 | 14 |
150–179 | 29 |
180–209 | 23 |
210–239 | 3 |
240–269 | 3 |
≥270 | 0 |
2dii) When forming your expectations for Bank Rate and CPI inflation (question 1a and 2a), which of the following most closely reflects your assumptions around second-round effects from the energy shock?
Count | |
|---|---|
No new second-round effects from the energy shock, owing to weaker worker bargaining and firm pricing power. | 17 |
Moderate additional second-round effects, consistent with some effect on short-term inflation expectations and hence wages. | 52 |
Stronger and more persistent additional second-round effects, stemming from a greater effect of the energy shock on long-run inflation expectations and hence wages and prices. | 9 |
2e) How do you currently perceive the monetary policy stance in the UK?
Count | |
|---|---|
Clearly restrictive | 5 |
Somewhat restrictive | 38 |
Neither restrictive nor accommodative | 24 |
Somewhat accommodative | 9 |
Clearly accommodative | 3 |
Question 3: Expectations for gilt supply and yields
3a) What do you expect the DMO’s actual annual gilt issuance to be in the 2026–27 and 2027–28 financial years (£ billions)?
25th percentile | 50th percentile | 75th percentile | Number of responses | |
|---|---|---|---|---|
2026–27 | 248 | 250 | 255 | 59 |
2027–28 | 260 | 290 | 301 | 58 |
3b) Please provide your most likely (ie modal) expectation for the 10-year gilt yield at the following points in the future. (a)
25th percentile | 50th percentile | 75th percentile | Number of responses | |
|---|---|---|---|---|
End-December 2026 | 5.20 | 5.25 | 5.40 | 69 |
End-June 2027 | 4.90 | 5.00 | 5.25 | 70 |
End-December 2027 | 4.50 | 4.93 | 5.11 | 68 |
Question 4: Expectations for exchange rates
4a) Please provide your most likely (ie modal) expectation for the level of GBPUSD one year ahead.
25th percentile | 50th percentile | 75th percentile | Number of responses |
|---|---|---|---|
1.3300 | 1.3400 | 1.3500 | 65 |
4b) Please provide your most likely (ie modal) expectation for the level of EURGBP one year ahead.
25th percentile | 50th percentile | 75th percentile | Number of responses |
|---|---|---|---|
0.8200 | 0.8400 | 0.8500 | 65 |
Throughout, the Xth percentile is calculated by ranking the survey responses in ascending order and reporting the response which is ranked in position k where k is (X/100)*(sample size -1) +1. For numeric answers, where k is not an integer (ie this position lies between two responses), the result is interpolated by applying the percentile proportional to the distance between them. Discontinuous answers, such as policy meeting dates, are not interpolated. Instead, the first response which covers at least X% of the sample is reported.