UBS: The Bank of England may raise its inflation and economic growth expectations at the August meeting.

UBS economists said in a report that the Bank of England may raise its inflation and economic growth expectations for the UK in 2025. They said that given the higher than expected inflation data for June, the Bank of England may slightly raise its inflation expectation for the UK in 2025 from 3.3% to 3.5%. UBS stated that following higher than expected GDP growth in the first quarter, growth forecasts may also be slightly adjusted upwards. "Compared to the Bank of England's assumptions in May, we expect energy prices and the effective pound exchange rate to be raised, while the policy rate assumption may remain largely unchanged."