Bank of England predicted to raise interest rates this year
The Bank of England will raise interest rates to four per cent by the end of the year, a top Wall Street bank has warned. Goldman Sachs has upgraded its interest rate expectations amid concerns that inflation could jump higher than previously expected. The bank said an interest rate hike this year was more likely [...]
Goldman Sachs has forecast that the Bank of England will raise interest rates to four percent by the end of the year, driven by concerns that inflation could surge beyond projections. This comes as the bank revised its inflation forecast for the beginning of 2027 upwards to 3.9 percent, reflecting heightened expectations of interest rate hikes to curb inflationary pressures stemming from the energy price shock caused by the Iran conflict.
Analysts are divided, with some believing the Bank may signal a tightening of monetary policy later this week, while others argue that the Bank's patience may be waning as growth resilience could increase policymakers' nervousness over higher inflation.
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