Bloomberg Model Sees Bank of England Rate Hike in February

A machine learning model built by Bloomberg Economics predicts that the Bank of England will raise interest rates in February, ahead of most forecasters. The model, which replicates one developed by the European Central Bank to evaluate risks to its central outlook, sees a quarter point hike to 4% at the first policy meeting of next year.

The consensus forecast among economists is for rates to remain at 3.75%, but the Bloomberg Economics model suggests a more aggressive approach from the Bank of England. This would be an increase of one-quarter of a percentage point, taking the interest rate to its highest level since 2008.