Looking forward1 Aug 2025 17:21
Interest rates are predicted to lower and energy prices are predicted to rise. All good for UKW.
1) Yes UK energy prices are expect to rise in the coming months despite recent decreases in the price cap. While the energy price cap for July-September 2025 has decreased by 7% compared to the previous quarter, it still represents a 10% year-on-year increase compared to the same period in 2024, indicating higher overall prices. Analysts predict the price cap will likely rise again in October 2025.
2) Pantheon's analysts forecast that interest rates will end 2026 at 4%, just 0.25 percentage points below current levels. Meanwhile, economists at Capital Economics predict the base rate will fall to 3.5% by early 2026. Looking beyond late 2025 and early 2026, economists differ on where interest rates will stabilize.