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Interest Rate Outlook

GOLDMAN SACHS GROUP INC · 2026-09-14 · Importance 17 · Surprise 24

Goldman Sachs now expects the Bank of England to raise interest rates later in 2026 and into early 2027. The revised view reflects persistent UK inflation, higher wholesale energy prices, and stronger-than-expected economic growth. Markets were pricing 47 basis points of BoE rate hikes by year-end, followed by a potential shift to rate cuts by late 2027.

Key facts

• Goldman Sachs now anticipates Bank of England rate hikes beginning in November 2026 and continuing into early 2027. source
• Traders are pricing in 47 basis points of rate hikes by year-end, according to the Reuters item referencing market pricing alongside Goldman Sachs's view. source