# BofA Forecasts January Fed Hike

> BofA Global Research now expects a January 2027 Fed rate hike after hotter-than-expected October CPI data.
- Title: BofA Forecasts January Fed Hike · The Economic Times
- Summary: BofA Global Research now expects a January 2027 Fed rate hike after hotter-than-expected October CPI data.
- Keywords: bofa global research, federal reserve, january 2027, interest rate hike, cpi data, october 2026, The Economic Times
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/us-stocks/news/bofa-adds-january-fed-hike-to-forecast-says-quarterly-pace-no-longer-enough/articleshow/135808910.cms
- Author: Reuters
- Published: 2026-11-13T15:45:00+00:00
- Read time: 1 min
- Topics: bofa global research, federal reserve, january 2027, interest rate hike, cpi data, october 2026, money, business
## BofA Global Research Update
BofA Global Research now expects the Federal Reserve to deliver an additional 25-basis-point increase in January 2027, on top of its prior forecast of hikes in December and March.

> After october cpi, the fed looks further behind the curve on inflation
## CPI Data Impact
Hotter-than-expected October CPI data boosted bets on higher borrowing costs and raised inflation expectations.
## Fed Rate Context
The Fed raised its benchmark interest rate to a 3.75%-4.00% range in September, marking its first hike in three years.
## BofA's Inflation View
Economists at BofA said the central bank can no longer afford to raise rates at a quarterly pace after October CPI data.

> After october cpi, the fed looks further behind the curve on inflation
## Fed Policy Outlook
Fed Governor Christopher Waller suggested a 25-basis-point hike next month and a larger increase if price pressures accelerate.
## Market Reaction
Goldman Sachs and Deutsche Bank similarly revised their Fed outlooks after this week's CPI data, with Goldman now forecasting hikes in December and March.
## Key takeaway

BofA Global Research revised its forecast to include a January 2027 Fed rate hike following hotter-than-expected October CPI data.