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.
Several explosions in Bahrain; US positions have been targeted, Mehr news reports
Philippines says Iran has assured safe passage of vessels
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
[MARKET ANALYSIS] Trump reignites geopolitical tensions to the detriment of bonds
[MARKET ANALYSIS] DXY buoyed by Trump's comments on Iran to the detriment of G10 peers
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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.
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