C · News · 20260914N
Interest Rate Environment
CITIGROUP INC · 2026-09-14 · Importance 17 · Surprise 24 · In source text
Citigroup now expects the Bank of England to raise interest rates later in 2026 and into early 2027, reversing its previous unchanged-rate view. The forecast reflects persistent UK inflation, higher wholesale energy prices, and stronger-than-expected economic growth. Markets are pricing approximately 47 basis points of BoE rate hikes by year-end, followed by potential rate cuts by late 2027.
Key facts
- Citigroup now anticipates Bank of England rate hikes later this year and into early 2027. source
- Citigroup characterized its net interest income as "resilient" in explaining recent share performance. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | contingent | — | Citigroup now anticipates Bank of England rate hikes later this year and into early 2027. |