{"id":668155,"date":"2026-07-01T15:25:12","date_gmt":"2026-07-01T15:25:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/668155\/"},"modified":"2026-07-01T15:25:12","modified_gmt":"2026-07-01T15:25:12","slug":"united-kingdom-balanced-inflation-and-politics-risk-hsbc","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/668155\/","title":{"rendered":"United Kingdom: Balanced inflation and politics risk \u2013 HSBC"},"content":{"rendered":"<p>HSBC\u2019s Willem Sels and Lucia Ku note that UK inflation remains above target but see risks as more balanced after the US-Iran interim peace agreement. They expect no further rate hikes in 2026, keep a neutral stance on UK gilts and UK <a href=\"https:\/\/www.fxstreet.com\/markets\/equities\" data-fxs-autoanchor=\"\" rel=\"nofollow noopener\" target=\"_blank\">equities<\/a>, and stay overweight 5\u20137-year GBP investment grade credit, while upgrading GBP high yield to neutral despite ongoing political uncertainty.<\/p>\n<p>BoE on hold with neutral UK view<\/p>\n<p>&#8220;As expected, the Bank of England (BoE) maintained its policy rate at 3.75% in June. While CPI moderated to 2.8% in May, it remains above target. Wage pressures and weak consumer confidence persist, while economic growth is expected to remain modest amid mixed indicators.&#8221;<\/p>\n<p>&#8220;With energy prices stabilising following the US-Iran interim peace agreement, inflation risks are now more balanced. Accordingly, we have revised our rate forecast to reflect no further hikes in 2026. We maintain a neutral position on UK gilts and UK equities, while remaining overweight on GBP investment grade credit, favouring 5-7-year duration. We also upgrade GBP high yield to neutral due to improved risk sentiment.&#8221;<\/p>\n<p>&#8220;Inflation is expected to peak at 3.25% in Q4 as the second-round effects from the Middle East conflict are contained, we now expect the Bank of England to hold <a href=\"https:\/\/www.fxstreet.com\/rates-charts\/rates\" data-fxs-autoanchor=\"\" rel=\"nofollow noopener\" target=\"_blank\">rates<\/a> steady this year.&#8221;<\/p>\n<p>(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)<\/p>\n","protected":false},"excerpt":{"rendered":"HSBC\u2019s Willem Sels and Lucia Ku note that UK inflation remains above target but see risks as more&hellip;\n","protected":false},"author":2,"featured_media":590531,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[59,57,58,50,56,54,55],"class_list":["post-668155","post","type-post","status-publish","format-standard","has-post-thumbnail","category-united-kingdom","tag-gb","tag-great-britain","tag-greatbritain","tag-news","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/668155","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=668155"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/668155\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/590531"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=668155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=668155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=668155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}