JPMorgan Predicts Bank of England Rate Hike in February 2027, Revising Earlier Cut Forecast

MacroDigital Finance
โดย ロイター·GB·Read original
Summary · why it matters

Economists at U.S. banking giant JPMorgan Chase said on the 17th that they expect the Bank of England to raise interest rates in November and again in February 2027, revising their earlier forecast of one hike in November followed by two cuts in 2027. The Monetary Policy Committee decided that day by a 6-3 majority to hold the policy rate at 3.75%, warning that a prolonged Middle East conflict could require further tightening, and also indicated that UK inflation is expected to exceed 4% in early 2027. JPMorgan senior economist Alan Monks noted in a report that, barring a major change in the geopolitical outlook, a November hike sounds all but decided, and he expects one more hike in 2027 following the November move, after which the BOE is seen holding the policy rate unless clear evidence emerges of second-round inflation effects such as wage expectations rising to 4%. He also assessed the BOE's decision, announced alongside the rate decision, to halt all government bond sales for the next six months as a clear and resolute plan aimed at reducing uncertainty during a period of market instability, while calling it a big surprise given the impression that it blurs the line between BOE and government decisions.

Impact on stocks 3

Digital Finance & Tokenization▲ · 1 stocks
JPMorgan Chase & Co
JPM
± MixedCapitalrelevance

JPMorgan is the forecaster revising its BOE rate outlook; no direct financial impact on the bank itself.

Others▲ · 2 stocks
％UK Government Bond 10Y
GB-10Y
▲ PositiveMonetaryrelevance

BOE holding at 3.75% with expected hikes in November and February 2027 pushes UK gilt yields higher.

％Effective Federal Funds Rate
EFFR
▲ PositiveMonetaryrelevance

BOE hawkish hold and expected hikes signal higher UK rates, but this is the US Fed funds rate, only indirectly referenced.

© 2026 MarketDXNews