Goldman Sachs turned more hawkish on the Bank of England, now forecasting a 25bp
hike in November as inflation remains elevated and growth is steady; it had
previously expected rates to stay unchanged through 2026. Analysts cited a sharp
recent rise in wholesale energy prices and stronger-than-expected economic data
that pushed inflation above BoE projections. Goldman expects the Bank Rate to be
held at 3.75% on Sept. 17, to pause after a November hike as easing energy
prices lower the need for further tightening, and to begin cutting rates toward
end‑2027. LSEG data show traders price roughly 47bp of additional BoE tightening
by year-end.
