Goldman Sachs said on the 14th that it now expects the Bank of England to raise interest rates by 25 basis points in November, revising its previous forecast that rates would be held steady throughout the year. In a report, analysts noted that wholesale energy prices have risen sharply in recent weeks, headline inflation has climbed by more than the central bank anticipated, and growth indicators have also been solid. Goldman expects rates to remain unchanged at 3.75% at the Monetary Policy Committee meeting on the 17th, in line with the broad market consensus. It also expects that after the November hike, rates are likely to be held steady as falling energy prices reduce the need for further tightening, with rate cuts beginning in late 2027. According to LSEG data, the market has priced in a total of 47 basis points of rate increases by the end of the year.
Goldman Sachs Group IncGoldman revises its own BoE rate forecast; no direct financial impact on Goldman itself.
