Interest rates may rise to 4.75% in UK as Bank of England looks to stop ‘major recession’ | Personal Finance | Finance

Mr Trokoudes added: “However, the markets think rates will reach 4.75 percent in the UK because of what’s happening in other advanced economies, in particular the US.

“The US shows how interest rate expectations can change very quickly. Following the Fed’s decision to raise rates by a quarter of a percentage point in February, and comments from the Fed Chair Jay Powell, markets had even begun to price in interest rate cuts by the end of the year in the US. Those predictions of cuts extended to the UK as well.

“Now US interest rates are expected to rise to a higher peak and cuts by the end of the year look far less likely.

“And even if there are interest rate cuts, they’re unlikely to be deep as central banks will want to tread carefully to ensure inflation is under control unless there is a major recession.”