Goldman Sachs Sees Bank of England Rate Hike in February
Goldman Sachs expects the Bank of England to raise interest rates by 25 basis points in February due to higher energy prices and strong economic data. The brokerage also anticipates a quarter-point hike next week while keeping policy guidance unchanged.
Insights:
Goldman Sachs expects the Bank of England to raise interest rates by 25 basis points in February 2027, following a widely anticipated quarter-point hike. The upward revision in the United Kingdom's borrowing cost trajectory comes as higher energy prices and resilient economic data reshape inflation outlooks. Money markets currently price in a 92% probability of a quarter-point increase when policymakers meet on November 5.
