Danske Bank: Bank of England to Deliver Further Rate Hikes in February, April 2027

12:02 PM EST, 11/05/2026 (MT Newswires) -- Danske Bank Research expects the Bank of England to lift its key rate again in February and April 2027, after its Monetary Policy Committee voted 8-1 in favor of a 25-basis-point increase to 4% at its November 2026 meeting. All nine of the MPC members supported raising the interest rate, with Catherine Mann preferring to increase it by 50 basis points, amid expectations that inflation in the UK will accelerate to 5% by the second quarter of 2027, the research firm wrote in a Thursday note. "We change our call and add two further 25bp hikes in February and April, taking Bank Rate to 4.50%. A more resilient economy and the growing risk of second-round effects from persistently high energy prices strengthen the case for further tightening," analysts said. "This rests on the assumption that no lasting resolution to the conflict is reached. The almost 70bp of tightening priced in by the market over the coming year seems excessive."