Barclays, UBS back BoE hikes as inflation risks mount
Barclays and UBS Global Research expect the Bank of England to hike interest rates as soon as November, saying rising inflation risks point to a quicker resumption of policy tightening after the centr...
Two major global banks, Barclays and UBS, have endorsed the Bank of England's potential interest rate hikes later this year, citing mounting inflation risks. The BoE maintained its key interest rate of 3.75% on Thursday, but released meeting minutes that hinted at a more aggressive approach to fighting inflation. These minutes suggested the central bank could join forces with its European and US counterparts to raise borrowing costs.
Barclays and UBS are among a growing number of financial institutions that predict the BoE will raise rates in November 2026 and February 2027. UBS's economists, led by Anna Titareva, argue that the central bank may prefer to tighten policy now, rather than risk higher inflation and damage to its credibility. Meanwhile, the ongoing conflict in the Middle East has raised concerns about renewed inflation pressures, prompting central banks worldwide to face the threat of persistent price growth.
Written by urgent.news from Gulf Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
