Goldman Sachs raises rate forecasts for 13 economies

Goldman Sachs has raised its policy rate forecasts for 13 economies over the past month, signaling a shift toward tighter monetary policy across developed and emerging markets. The firm increased its end-2026 forecast for Japan by 25 basis points to 1.50%, lifted its end-2027 UK forecast by 25 basis points to 4.00%, and raised its end-2026 Canada forecast by 25 basis points to 2.50%. It also boosted forecasts for Australia, New Zealand, and several emerging markets including Egypt, Ukraine, India, and Russia. Over the last three months, 91% of developed market central banks raised rates on a GDP-weighted basis while none cut, and Goldman’s Global Financial Conditions Index tightened by 22 basis points. The firm expects global rates to stay broadly unchanged at 3.4% over the next four quarters, with developed markets raising rates by 16 basis points and emerging markets cutting by 49 basis points on average.