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2026-11-02 19:02:26
[Bank of England's Interest Rate Meeting Signals Peak of Current Rate Hike Cycle Approaching] ⑴ Analysts at Tickmill Group point out that the Bank of England will signal at its interest rate meeting this Thursday that the peak of this rate hike cycle is likely nearing its end. ⑵ The market consensus is for a 25 basis point rate hike at this meeting, raising the benchmark rate to 4.0%; however, the central bank is unlikely to accept market pricing, with the market currently betting on three more rate hikes by July 2027. ⑶ The UK labor market has shown signs of cooling, supporting the central bank's slowdown in tightening; interest rate futures data show that the market has lowered its forward rate hike expectations, currently pricing in a cumulative rate hike of 102 basis points by the end of 2027, lower than the 116 basis points of the previous week. ⑷ Institutional View: Weak employment will suppress wage growth, reducing the necessity for further rate hikes; the central bank is likely to cool market expectations of continued rate hikes in advance.
