UK economists at Goldman Sachs are predicting a 50 basis point increase in the Bank of England's interest rate during the August meeting, with a projected peak of 6% by November. The current interest rates are at 5.0%. The forecast for a further 100 basis point increase is based on continued strong inflationary pressure, wage growth, and a slower-than-expected response of outstanding mortgages to changes in interest rates.
Additionally, GBP/USD rates have been supported by speculation that the Federal Reserve (FED) may have to revise its hawkish policy due to lower-than-expected inflation readings. This shift in sentiment, combined with upcoming inflation and retail sales data in the UK, may lead to larger movements in the GBP/USD pair this week.
GBPUSD, D1 interval, source xStation 5
Chart of the Day: EURNOK – When Will the Sell-Off End? (29.06.2026)
Economic Calendar: What may drive markets this week? (29.06.2026)
Three Markets to Watch Next Week: EURUSD, Gold, S&P 500 (26.06.2026)
Fed's Kashkari says AI will force a rate hike; EURUSD and USD reverse early moves ❗