Citigroup and Goldman Sachs Anticipate Bank of England Rate Hikes Amid Inflation Concerns

Citigroup and Goldman Sachs are predicting upcoming rate hikes by the Bank of England, driven by persistent inflation pressures. The speculations are fueled by rising energy prices and strong economic growth data. Both anticipate eventual rate cuts starting by the end of 2027.

Citigroup and Goldman Sachs have updated their forecasts, predicting that the Bank of England will implement rate hikes amid ongoing inflation concerns. These changes in expectation come as inflation pressures, partly driven by surging energy prices, continue to challenge the UK economy.

Goldman Sachs anticipates a 0.25% rate hike in November 2026, while Citigroup expects one more hike later this year with another in early 2027. These predictions reflect rising inflation figures and improved growth data.

As energy prices escalate and the UK economy experiences its fastest annual growth in 18 months, market focus intensifies on global monetary policy, especially with upcoming rate decisions from the US Federal Reserve and the Bank of Japan.