BoE

UK Q2 GDP & Bank Rate Scenario Simulator

Grounded in Reuters macro reports & BoE finely balanced policy outlook

Current Bank Rate: 5.00%

Preset Macro Scenarios

Macroeconomic Indicators

Drag sliders to recalculate
1.1%
-1.0% (Contraction) 1.1% (Forecast) 3.0% (Rapid)
2.3%
1.0% 2.0% Target 5.0%
5.1%
2.0% 5.1% Current 8.0%
52.5
40.0 (Recession) 50.0 (Neutral) 65.0 (Expansion)
Analyst Insight: Economists highlight that services inflation and persistent wage pressures complicate the BoE MPC's path. Small ticks in Q2 GDP & PMI determine whether cuts accelerate.

BoE MPC Interest Rate Decision Probabilities

Weighted Taylor Rule Policy Model
Cut 25bps (-0.25%)
35%
Hold Rate (5.00%)
55%
Hike 25bps (+0.25%)
10%

12-Month Simulated Swap & Policy Rate Path

Market Implied Curve

Household & Corporate Rate Impact Simulator

Direct real-economy transmission from simulated BoE rate shift

£250k Standard Mortgage (Monthly)
£1,498 -£18 / mo

Based on 25-yr repayment term adjusted for projected standard variable/fixed swap rates.

Corporate Debt Service Rate
6.91% SONIA + 1.91%

Simulated average lending margin for UK SME business refinancing.

Sterling Sensitivity (GBP/USD)
1.2820 Neutral Bias

Expected short-term exchange rate reaction to monetary divergence.

Baseline Model Active: Q2 GDP 1.1%, CPI 2.3%, Wage 5.1%, PMI 52.5 | BoE Hold: 55%, Cut: 35%, Hike: 10%
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