Goldman Sachs Predicts BOE Rate Hike in November

Goldman Sachs has revised its forecast for the Bank of England's interest rate. The bank now predicts a 25-basis-point increase in November 2026, up from its previous expectation that rates would remain unchanged through 2026.

This change is attributed to recent increases in wholesale energy prices and stronger-than-expected economic growth data. Oil prices have risen above $100 a barrel due to renewed hostilities in the Middle East, increasing concerns about Britain's inflation outlook.

In its latest note, Goldman Sachs analysts mentioned that the Bank of England will likely hold rates unchanged at 3.75% at its September 17 meeting, which aligns with consensus expectations.