ING: Bank of England to Raise Key Rate in November Meeting; Another Hike Ahead Likely

10:15 AM EST, 11/02/2026 (MT Newswires) -- ING expects the Bank of England to increase its key rate at its monetary policy meeting on Thursday for "insurance purposes," forecasting a 7-2 vote in favor of a hike. "We expect headline CPI to peak a touch above 4% early next year, and we think the BoE's new forecasts will show this too. The Bank's July projections had inflation reaching 3.2% in late 2026, based on oil below US$80/bbl and natural gas at around half its current level. ... Then again, there is essentially no sign of these much-feared second-round effects so far," analysts said Monday. "This all leaves the Bank in a strange situation: hiking not because the economic data is telling it to, but because of the risks presented by sharply higher energy prices. The energy crisis has reached sufficient depth and longevity that officials likely feel they, reluctantly, have to act." ING also sees another rate increase in February 2027 as "more likely than not" amid rising energy prices as the Iran war continues, with inflation anticipated to come in higher as the UK heads into winter.