Pantheon Macro shifts BoE call to two rate increases in 2026 (prev. exp. one increase), following BoE announcement
- Still expect two cuts in 2027.
- "Assume the MPC hikes in June and September, but see a risk that the MPC delays those hikes by one month."
Context
Pantheon Macro's revision of the Bank of England's (BoE) rate expectations from one increase to two in 2026 suggests a more hawkish outlook than previously priced in. This indicates confidence in persistent inflation pressures or an improving economic backdrop, which could deepen the divergence in rates relative to other central banks. Additionally, the mention of potential delays in the hikes introduces uncertainty around the timing, which may influence GBP and fixed-income markets.
Trade the TapeGet this analysis live, the moment it breaksNewsquawk's real-time dashboard delivers market-moving headlines and instant context to your desk before the rest of the market reacts.
Open Dashboard#UNITED KINGDOM#GBP#EUROPE#BOE#FIXED INCOME#EU SESSION#US SESSION#CENTRAL BANK