The Bank of England is widely expected to raise its benchmark interest rate to 4% from 3.75% today, marking its first hike since the end of last year and the first tightening move since 2023. The decision is seen as a foregone conclusion, with markets fully pricing in the increase and economists unanimously forecasting it.
Given the certainty around the rate hike, traders are more focused on the central bank's accompanying statements about inflation and economic growth. Any hints about future policy moves, particularly for December, will be closely scrutinized.
For a deeper analysis of what to expect and insights into the Monetary Policy Committee members' stances, Philip Aldrick’s Decision Day Guide provides additional context.