Goldman Sachs forecasts Bank of England 0.25% rise February 2027

Business Nov 02, 2026

Goldman Sachs thinks the Bank of England will raise interest rates by 0.25% in February 2027, following another expected bump in November 2026.

This is mostly because energy prices are up and the UK economy's been a bit stronger than people thought.

Right now, markets are betting there's a 92% chance of that November increase.

Goldman Sachs sees 4.25% through mid-2027

The BoE will announce its next move on November 5, 2026.

Even with these hikes, Goldman Sachs expects rates to stay at 4.25% until at least mid-2027.

After that, rate cuts aren't likely until late 2027, eventually settling around 3.25%.

It's a cautious approach, similar to what the US and Europe are doing to keep inflation in check.