Yes. Our team forecasts Bank Rate will reach 3.5% in the first half of 2026, down from 4%. This aligns with market expectations. Key drivers include cooling inflation (peaked at 3.8% in September), rising unemployment (now 5%), and fiscal tightening creating space for monetary easing.

Lower rates widen spreads, which is the gap between existing loan rates and new facility rates. As rates decline toward 3.5%, businesses can refinance into cheaper facilities. Lenders remain cautious and prefer secured transactions. Competition for high-quality opportunities is intensifying, meaning businesses with strong fundamentals can access tighter pricing and flexible terms.