Bank of England Officials Become Most Hawkish Since Early 2023 as Inflation Rises Above 4%

A Bloomberg Economics model shows Bank of England Monetary Policy Committee officials are the most hawkish since early 2023. Markets now price a near-certain rate hike on November 5. The shift coincides with rising energy costs, according to Bloomberg Economics Chief UK Economist Dan Hanson. The Bank of England held rates at 3.75% in September on a 6-3 vote, while the Federal Reserve and European Central Bank have already tightened. Bloomberg Economics projects UK inflation to remain above 4% in early 2025, twice the BoE's 2% target.