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2026-11-05 16:16:26
[Bank of England Expected to Raise Rates by 25 Basis Points to 4.00%, Potentially First Since August 2023] ⑴ The Bank of England is expected to raise interest rates by 25 basis points to 4.00% at its Monetary Policy Committee meeting on Thursday, potentially its first rate hike since August 2023. ⑵ The market is pricing in a probability of over 96%, with analysts predicting a 7-2 vote in favor. External committee members Swati Dhingra and Alan Taylor are expected to support keeping rates unchanged. ⑶ This anticipated rate hike stems from accelerating inflation in the UK, with the September CPI rising to 3.5% from 3.1% in August. High levels in the services sector and core inflation have also reinforced concerns about persistent domestic price pressures. ⑷ However, uncertainty remains as to whether this rate hike is a one-off defensive measure or the start of a broader tightening cycle. ⑸ While the market has already considered a further rate hike to 4.75% or higher next year, Governor Andrew Bailey's speech and the updated Monetary Policy Report will be key to assessing the Bank of England's future policy path.
