Finance
J.P. Morgan Sees Only One BoE Rate Hike in 2026 After Bailey's Reuters Interview
Published by Global Banking & Finance Review®
Posted on April 1, 2026
1 min readLast updated: April 1, 2026
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J.P. Morgan now forecasts only one Bank of England rate hike in 2026—in June—after Governor Andrew Bailey signalled markets were overly aggressive in estimating borrowing‑cost rises. Previously, two hikes were expected in April and July.
J.P. Morgan Forecasts One Bank of England Rate Hike in 2026 After Bailey Interview
J.P. Morgan Revises Bank of England Rate Hike Expectations
Background on Rate Hike Projections
April 1 (Reuters) - J.P. Morgan on Wednesday said it now expected only one Bank of England interest rate hike this year after Governor Andrew Bailey told Reuters that financial markets had been too aggressive in pricing in higher borrowing costs.
Previous Forecasts and Adjustments
The U.S. bank had previously expected two increases in Bank Rate, in April and July.
Insights from J.P. Morgan Economist
"Bailey's comments suggest April is too soon for a majority for a hike to develop, and we now shift to expecting one hike in June," J.P. Morgan economist Allan Monks said, adding that he continued to expect two rate cuts in 2027.
(Reporting by Andy Bruce; editing by David Milliken)
Key Takeaways
- •J.P. Morgan downgraded its 2026 BoE rate‑hike outlook from two to one, shifting timing to June after Governor Bailey’s comments to Reuters (investinglive.com).
- •The bank retains expectations for two rate cuts in 2027, indicating a more gradual easing path following the upcoming hike (investinglive.com).
- •Market analysts had earlier priced in two BoE hikes this year, but J.P. Morgan’s revision reflects renewed caution amid inflation and energy‑price dynamics (investing.com)
References
Frequently Asked Questions about J.P. Morgan sees only one BoE rate hike in 2026 after Bailey's Reuters interview
1How many Bank of England rate hikes does J.P. Morgan expect in 2026?
J.P. Morgan now expects only one Bank of England rate hike in 2026.
2When does J.P. Morgan expect the next BoE rate hike?
J.P. Morgan now predicts the next Bank of England rate hike will occur in June 2026.
3Does J.P. Morgan expect any BoE rate cuts?
J.P. Morgan continues to expect two rate cuts in 2027.
4Who changed J.P. Morgan's BoE rate hike outlook?
J.P. Morgan economist Allan Monks announced the updated forecast.
