BofA Global Research expects the BoE to deliver two 25bp rate hikes in June and July 2026 (vs prior forecast of cuts in June and September); expects the BoE to deliver three 25bp rate cuts in April, July and November 2027

BofA's updated forecast indicates a significant shift in expectations for the Bank of England, now projecting two rate hikes in mid-2026 instead of anticipated cuts. This change suggests market participants may need to reassess their outlook on GBP and fixed-income strategies, as it implies a tighter monetary policy environment than previously expected, influencing both currency and bond markets going forward.