UBS strategists expect the Bank of England to raise rates again in February next
year, lifting the terminal rate to 4.25% or higher. The Bank updated on Thursday
its inflation forecast and projected inflation to rise to around 5% by mid-2027,
signaling the prospect of further tightening. UBS says this implies at least
one more 25bp hike and cannot rule out additional increases; LSEG data show
markets have fully priced two cumulative hikes by mid-2027.
