BoE Interest Rate Hike Expected in November Amid Inflation Risks

Barclays and UBS Global Research expect the Bank of England to hike interest rates in November, citing rising inflation risks. The BoE kept interest rates at 3.75% on Thursday, but its meeting minutes signaled a more hawkish tone.

The brokerages join peers including J.P.Morgan in predicting rate hikes in November and February 2027. UBS economists led by Anna Titareva stated that higher inflation would be more costly than tightening now.

The expectations come as the widening conflict in the Middle East fuels concerns over renewed inflation pressures, leaving central banks grappling with the risk of persistent price growth.