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Economics
Central Banks

Goldman Boosts BOE Call, Sees 75 Basis Points Next Two Meetings

  • Goldman Sachs economists now see UK’s key rate peaking at 4.5%
  • BOE lifted benchmark to 2.25% Thursday in split-decision vote
Outside the Bank of England in London.

Outside the Bank of England in London.

Photographer: Jose Sarmento Matos/Bloomberg

Goldman Sachs Group Inc. economists said they now expect the Bank of England to raise its key interest rate by 75 basis points in November and December after three policy makers sought an increase of that magnitude this week.

The bank’s new forecast was in response to the split decision to raise rates by 50 basis points Thursday, along with a tighter labor market and the expectation the BOE will boost its growth and inflation predictions when its officials next meet, economists including Sven Jari Stehn said in a report to clients.