Bank of America Global Research expects the Bank of England to raise interest rates by 25 basis points in November 2026 and February 2027, aligning with J.P. Morgan, Barclays, and UBS. LSEG data shows a 63% probability priced in for a November 2026 rate hike. This forecast marks a reversal for BofA, which had abandoned its rate hike predictions just months earlier in June 2026, projecting rates to remain steady at 3.75% throughout the year. Major brokerages are concerned that UK inflation could push past 4% in early 2027, justifying a return to tighter monetary policy framed as precautionary rather than the start of a sustained tightening cycle. Two rate hikes would push the BOE policy rate to 4.25%.
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