{"id":71918,"date":"2026-09-17T15:08:14","date_gmt":"2026-09-17T19:08:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/barclays-forecasts-boe-rate-hikes-amid-middle-east-tensions-eu-pledges-e3-3b-to-ukraine\/71918\/"},"modified":"2026-09-17T15:08:14","modified_gmt":"2026-09-17T19:08:14","slug":"barclays-forecasts-boe-rate-hikes-amid-middle-east-tensions-eu-pledges-e3-3b-to-ukraine","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/barclays-forecasts-boe-rate-hikes-amid-middle-east-tensions-eu-pledges-e3-3b-to-ukraine\/71918\/","title":{"rendered":"Barclays Forecasts BoE Rate Hikes Amid Middle East Tensions; EU Pledges \u20ac3.3B to Ukraine"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Barclays (<a href=\"\/stock\/BARC\">BARC<\/a>)<\/strong> now expects the <strong>Bank of England (BoE)<\/strong> to implement <strong>25-basis-point rate hikes<\/strong> in both <strong>November 2026<\/strong> and <strong>February 2027<\/strong>, driven by persistent inflation risks.<\/li>\n<li>The <strong>European Union<\/strong> has committed to disbursing <strong>\u20ac3.3 billion<\/strong> to <strong>Ukraine<\/strong> tomorrow, specifically earmarked for the procurement of <strong>missiles and drones<\/strong>.<\/li>\n<li>The <strong>U.S. State Department<\/strong> has granted visas to an <strong>Iranian delegation<\/strong> for next week&#39;s <strong>UN General Assembly<\/strong>, though they will face strict travel and luxury goods purchase restrictions.<\/li>\n<li>Global energy prices remain volatile as <strong>Brent crude<\/strong> hovers near <strong>$100 a barrel<\/strong> due to ongoing conflict in the Middle East, complicating central bank efforts to tame inflation.<\/li>\n<\/ul>\n<h2>Barclays Shifts Hawkish on BoE Outlook<\/h2>\n<p>Analysts at <strong>Barclays (<a href=\"\/stock\/BARC\">BARC<\/a>)<\/strong> have revised their interest rate projections for the United Kingdom, now forecasting two additional <strong>25bp hikes<\/strong> by early 2027. The bank cites <strong>persistent inflation risks<\/strong> exacerbated by the ongoing conflict in the Middle East, which has kept energy costs elevated and threatened to de-anchor inflation expectations.<\/p>\n<p>The <strong>Bank of England<\/strong> recently held its Bank Rate at <strong>3.75%<\/strong> in a split <strong>6-3 vote<\/strong>, but Governor Andrew Bailey warned that policy decisions will become increasingly difficult if the Iran conflict continues to pressure global supply chains. <em>Market participants are closely watching for a potential shift in the BoE&#39;s &quot;higher-for-longer&quot; stance as headline inflation risks reaching 4% by early next year.<\/em><\/p>\n<h2>EU Bolsters Ukraine\u2019s Defense Capabilities<\/h2>\n<p>European Commission President <strong>Ursula von der Leyen<\/strong> announced today that the <strong>European Union<\/strong> will disburse <strong>\u20ac3.3 billion<\/strong> to <strong>Ukraine<\/strong> on September 18. This latest tranche of financial aid is specifically designated for the procurement of <strong>missiles and drones<\/strong>, as Kyiv continues to defend against Russian aggression.<\/p>\n<p>The funding comes amid a broader push by European leaders to stabilize Ukraine&#39;s military supply lines through 2026 and 2027. This move underscores the EU&#39;s commitment to long-term security assistance, even as member states grapple with their own internal economic pressures and rising defense budgets.<\/p>\n<h2>Iranian Delegation to Attend UN Under Strict Prohibitions<\/h2>\n<p>The <strong>U.S. State Department<\/strong> confirmed that visas have been granted to a &quot;core&quot; <strong>Iranian delegation<\/strong>, including President <strong>Masoud Pezeshkian<\/strong>, to attend the <strong>UN General Assembly<\/strong> in New York next week. Despite the diplomatic clearance, the delegation will operate under significant constraints, including <strong>travel restrictions<\/strong> and a ban on the purchase of <strong>luxury goods<\/strong>.<\/p>\n<p>A spokesperson noted that the delegation is <strong>smaller than last year<\/strong>, reflecting the heightened tensions between Washington and Tehran. <em>The decision to grant visas follows U.S. host country obligations under the 1947 Headquarters Agreement, despite the two nations remaining in a state of &quot;stalemated war&quot; following recent hostilities in the Strait of Hormuz.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Barclays (BARC) now expects the Bank of England (BoE) to implement 25-basis-point rate hikes in both November 2026 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