BoE Rate Hikes Loom as Inflation Pressures Mount

Citigroup and Goldman Sachs have both revised their forecasts for Bank of England (BoE) interest rate hikes, citing persistent inflation pressures and strong economic data.

According to a Reuters report on September 14, Goldman expects a quarter-percentage-point hike in November 2026, while Citigroup anticipates one hike later this year and another in early 2027, likely in November and February.

The forecasts come as the UK's inflation outlook has worsened due to rising wholesale energy prices and strong economic growth. Data released earlier this month showed Britain's economy expanded at its fastest annual pace in 18 months in July, supported by artificial intelligence and momentum from a strong first half.