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Pantheon Macro shifts BoE call to two rate increases in 2026 (prev. exp. one increase), following BoE announcement

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.

Newsquawk StaffPublished On the live feed at — 14 more headlines followed before this page went public
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BoE Governor Bailey (Q&A), asked what he will be watching in the weeks ahead, says first-round effects (energy prices), indirect effects that impact costs of production, then second-round effects

BoE Governor Bailey (Q&A) says it would be a mistake to wait for second-round effects before acting; MPC will need to look at a broad-range of evidence

Pantheon Macro shifts BoE call to two rate increases in 2026 (prev. exp. one increase), following BoE announcement

BoE Governor Bailey (Q&A) says different policy rules give different answers; there is a good deal of space available to accommodate inflation pressures by not cutting rates

US BROKER MOVES: QCOM sees multiple upgrades after earnings, META downgraded at JPM

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  • 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

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.

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